EU confidence index hits historic low

The rapid deterioration of the financial climate in the EU continued in December 2008, during which the index of confidence hit an historic low of the past 23 years.

Poland, Bulgaria and Cyprus were the three countries in which the confidence among businesspeople and consumers continues to be at a relatively high level.

According to figures released by Eurostat, the general financial feeling index, the most fundamental in recording the climate of trust among businesspeople and consumers at a given point in time, dropped by 7.8 units in the Eurozone in December, reaching 67.1 units, compared to 74.9 in November.

The index covers all the main sectors, such as industry, constructions and retail, and also records the intentions of the consumers.

This is the lowest level since January 1985. Analysts expected a decrease but believed the index would not drop below 71 units. For the whole of the EU, the index dropped to 63.5 units compared to 70.5 in November 2008.

In Cyprus, the index dropped to 77.1 units from 84.3 in November. Among Eurozone countries, it was the most optimistic.