Business and Consumer Confidence Weakens in Italy, Belgium and the Netherlands

Measures of business and consumer confidence in March for three Eurozone countries–Italy, Belgium and the Netherlands--show growing pessimism among businessmen and consumers. Except for the Netherlands, business men were less confident in March than in February. Business confidence in the Netherlands, although slightly improved from February was still lower that than reached in September, 2001. Business confidence in Belgium declined sharply and is also near the levels of September, 2001. In Italy, although business confidence declined in March, at 92.8 (1995=100) it remains well above the low of 82.7 reached in September, 2001.

Consumer confidence in the three countries has generally deteriorated throughout 2002. In Belgium, consumer confidence, after rising sharply in late 2001, is now back to about the same level reached in September, 2001.. In both the Netherlands and Italy, consumer confidence has generally weakened ever since September 2001 and is now well below those levels in both countries.