Eurozone Consumer Confidence Sinks To 5-Month Low Amid Widespread Unrest Against Inflation

(RTTNews) - Euro area consumer sentiment eroded at a faster-than-expected pace in October to reach its lowest level in five months as several countries witness public unrest against a host of issues from the rising cost of living to poor education infrastructure, and governments struggle to tackle the debt concerns and the surging inflation due to the energy price shock caused by the escalating tensions in the Middle East.

The flash consumer confidence index sunk to -17.9 from -16.5 in September, which was the weakest score since the May reading of -18.9, preliminary data of the monthly survey by the European Commission showed on Thursday.

The corresponding measure for the whole of EU plummeted to -17.3 from -15.8 in the previous month. That was also the lowest since May.

Consumer confidence fell further below its long-term average, the EU report said. The flash readings are based on the consumer survey data from all EU countries except Estonia. Data was collected from October 1-21.

Detail results of the consumer confidence survey is set to be released along with the monthly Economic Sentiment survey results on October 29. Elsewhere in Europe today, French President Emmanuel Macron banned unauthorized protests and blamed the Leftist parties for the nationwide unrest that has been rattling the country over the past few days.

The country witnessed one of the major nationwide youth-led unrest on October 17 especially in the cities as people took to the streets to protest against a range of issues from poor public services especially education to the rising cost of living. Protests often turned violent.

The public unrest comes as the French government struggles to pass a budget for next year.

Italy is also facing growing unrest against the rising cost of living. Truckers blocked major highways as they protested against the high fuel costs, leading to disruptions of food and fuel supply and delayed response to medical emergencies.

The blockade prompted the Giorgia Meloni administration to announce a support package for truckers and farmers including financial aid to compensate for high diesel costs. The government has also said that it will tackle the roadblocks.

All the socio-political turmoil is rattling markets along with the surging oil price. The French 10-year bond yield crossed the 5.0 percent threshold on Wednesday for the first time since 2022. France's 10-year borrowing costs moved over the U.S. equivalent for the first time since 2013, on Thursday. Italy's 10-year bond yield is currently at 4.61 percent.