European Economic Confidence Dipped To 89.5 Points In July

July 30, 2008 12:49 p.m. EST

Brussels, Belgium (AHN) - A European Commission survey released Wednesday said economic confidence in the 15-member euro zone was down by 5.3 points to 89.5 in July.

The poll measures the economic mood in European Union (EU) nations which use the euro currency. The July level is the largest monthly dip since October 2001, triggered by soaring energy and food prices, which led to high inflation rates while global economic growth halted and even shrank.

Based on the survey, the EC is expected to release on Thursday the euro zone inflation rate will hit 4.2 percent for July, double the European Center Bank's aim of "close to, but just below 2 percent."

A similar drop in economic sentiment was recorded in the 27-member bloc EU, with the index down by 5.8 points to 88.7 points.

The EC survey came a week after surveys said Germany's consumer confidence dropped to its lowest level since June 2003.