Consumer confidence in EMU drops to 3-year low

According to the first estimate, European Commission’s consumer confidence dropped in July to the lowest level in three years time. The European Commission’s consumer confidence indicator dropped from -19.8 to -21.6, while the consensus was looking for only a marginal worsening. National details are not yet available and will only be published with the final release. Over the previous months, consumer confidence in the euro zone held up relatively well, but now the spreading debt crisis, faltering growth and rising unemployment rate is starting to weigh on consumers’ sentiment.