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
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