The renewed fall in Eurozone consumer confidence adds to concern that the bloc is still finding it hard to develop and sustain growth momentum, Chief European and UK Economist Howard Archer at IHS Global Insight said. February's dip in consumer confidence fuels suspicion that any improvement in Eurozone consumer spending over the coming months is likely to be gradual rather than pronounced, the firm noted. According to the economist, the disappointing confidence data is consistent with the modest slowdown in manufacturing and services output expansion in February, reported by the purchasing managers survey. Preliminary estimates from the European Commission showed that consumer confidence in the euro area unexpectedly relapsed in February from a 30-month high in January. Sentiment has been hit by elevated unemployment levels, squeeze in purchasing power, and tight fiscal policy. The consumer confidence index fell to -12.7 in February, after trending up to -11.7 in January from -13.6 in December. It was only the second fall in confidence since it started rising in December 2012. However, sentiment is still at its second highest level since July 2011 and marginally above its long-term average. The economist observed that stabilizing employment and the help to purchasing power coming from muted inflation across the Eurozone would provide some support to consumer spending over the coming months.

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