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European consumer confidence hits one-year high as energy crisis eases

Reduced energy usage lifts flash estimate but economists warn eurozone economy still faces challenges

Consumer confidence in the eurozone improved for the fifth consecutive month, reflecting optimism that the bloc’s economy could suffer at worst only a mild recession despite the energy crisis caused by the Ukraine war.

The European Commission said the flash estimate of its consumer confidence indicator for February, based on a survey of about 32,000 people across the region, was up 1.7 points to minus 19. That was its highest level for a year, though it remained below pre-pandemic levels and the long-term average and economists warned that the bloc’s economy still faces multiple challenges.

Sentiment among European consumers has been buoyed by the relatively mild winter, which helped to reduce energy consumption, boosted gas storage levels and allayed fears of potential shortages.

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