European Economic Confidence Slumps Most Since Sept. 11 Terrorist Attacks http://www.bloomberg.com/apps/news?pid=20601087&sid=aSaSV.o6ScLQ&refer=home
July 30 (Bloomberg) -- Europeans' confidence in the outlook for the economy dropped the most since the Sept. 11 terrorist attacks as soaring energy costs and the euro's advance against the dollar rattled consumers and executives. An index measuring sentiment in the euro area fell 5.3 points to 89.5 this month, the European Commission in Brussels said today. That is more than economists had forecast and the biggest slide since a 6.3 drop in October 2001, the month after the attacks in the U.S. Rising commodity prices have boosted inflation across Europe, sapping consumers' purchasing power and pushing up companies' costs. That is adding to pressure on the economy as the global turmoil in credit markets restricts access to capital. It also may limit the European Central Bank's scope to increase interest rates to fight inflation