(Alliance News) - Consumer confidence in the European Union and euro area dropped sharply in April, extending a decline triggered by the Iran war and falling to its lowest level in over two years, according to a flash estimate from the European Commission.

The Directorate-General for Economic & Financial Affairs said its consumer confidence indicator fell by 4.0 points in the EU and by 4.2 points in the euro area compared with March.

This left the index at minus 19.4 in the EU and minus 20.6 in the euro area, both significantly below their long-term averages and at their weakest levels since the turn of 2022 to 2023.

The Commission said the April reading continues a "free fall" in sentiment that began with the escalation of conflict in Iran.

The indicator is based on survey responses from consumers across all 27 EU member states and 21 euro area countries, collected between April 1 and April 21.

The data suggest households have become markedly more pessimistic about the economic outlook, amid heightened geopolitical uncertainty and rising energy-related pressures.

The European Commission will publish the full set of business and consumer survey results, including the economic sentiment indicator, on April 29.

By Eva Castanedo, Alliance News reporter

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