EU consumer confidence drops markedly

A leading market research group has said confidence among EU consumers has taken a tumble in recent months. It said people were getting increasingly worried about regional military conflicts and the spread of Ebola.

German market research group GfK reported Thursday that consumers in the 28-nation European Union had grown increasingly pessimistic about their own situation and the prospects for an economic upswing in their home countries.

GfK's consumer confidence index took a dive in the third quarter, dropping from 9.1 points to just 4.2 points between July and September.

"What's played no small role in the drop is the spread of Ebola outside West Africa, with consumers being highly worried about the long-term impact," GfK researcher Rolf Bürkl told the DPA news agency.

The worst still to come?

But Ebola isn't the only cause of consumers' pessimism. Those polled by the research group also spoke of the risks stemming from the protracted stand-off between the West and Russia over the Ukraine conflict and the military advances of the "IS" fighters.

Ebola and the economy

Also taking its toll had been many European nations' lowered growth outlook, with recession woes growing in a number of EU member states and German economic indicators pointing downwards, Bürkl commented.

He also mentioned strong deflationary pressures in large parts of the bloc, saying that low inflation or even falling consumer prices would keep households and companies from investments and purchases, which in turn could ultimately choke the economy and cost many jobs.

hg/sgb (dpa, GfK)   dw de