Weakening morale in Germany, declining optimism among manufacturers, and spooked markets have put predictions of strong growth made by the Central European Bank in doubt, wire news service Reuters reports.
Of the Eurozone fall, Reuters writes:
Economic sentiment in the 19-countries sharing the euro slipped for the third month in a row in March, data from the European Commission showed on Tuesday, suggesting economic growth in the bloc was not as steady as previously thought.
The Commission’s Economic Sentiment Indicator fell to 112.6 in March from a revised 114.2 in February, below the average forecast of 113.4 in a Reuters poll of 34 economists.
The downbeat reading of economic sentiment paired with falling inflation expectations for consumers and manufacturers alike, as well as earlier data suggesting loan growth and money supply in euro zone had also slowed, kicked the euro off a five-week high.