European Confidence Probably Fell in July on Gains in Euro, Oil

European business and consumer confidence probably fell for a second month in July as the euro’s appreciation and higher oil prices threatened to curb economic growth, a survey of economists shows.

As well as the euro’s surge to a record $1.3852 on July 24, crude oil’s 52 percent increase to $77.15 a barrel since mid- January imposed additional costs on companies and consumers.
Growth in Europe’s manufacturing and service industries, which account for two-thirds of the economy, slowed more than economists forecast in July and European retail sales fell the most in three years, according to surveys of purchasing managers.

In Germany, Europe’s largest economy, business confidence declined this month.

Adding to signs that growth may slow, equity markets plunged last week on concern that subprime-mortgage defaults, caused by the steepest U.S. housing slump in 16 years, will reduce corporate loans and end the boom in leveraged buyouts. Europe’s Stoxx 600 index posted its biggest weekly decline in almost five months.

Bloomberg