The Eurozone economic confidence deteriorates for the eighth consecutive month in August, driven by sluggish optimism in industry and services, according to the European Commission’s monthly survey. The survey shows that the economic confidence indicator in the 19 countries of the single currency area fell to 111.6 points in August from 112.1 in July, continuing the negative trend after the peak of 115.2 points December.

At the same time, the EC business climate indicator, which helps identify the phase of the business cycle, also declined to 1.22 points in August from 1.30 points in July, following a similar trend, after reaching 1.63 points in January.

A deterioration in confidence in August is taking place alongside a decline in the industry benchmark – decreasing to 5.5 points from 5.8 points in the previous month, although production expectations recovered after the fall in July.

The positions on current orders as a whole and inventories of manufactured products are deteriorating as well as the estimate for export orders.

The survey last month suggested that the trade strain between the European Union and the United States, which led to the imposition of US duties on steel and aluminum imports from Europe in June, as well as a threat to new duties on EU cars, has affected moods. But the two sides then agreed to develop their trade relations. The US duties on imports of steel and aluminum from the EU remained in force, but the threat to the same kind of action against European cars has softened.

Consumer confidence also declined to -1.9 points from -0.5 points in July.

However, the moods among retailers and construction companies have improved.

The expectations for consumer inflation for the next 12 months rose to 18.2 points, close to the mid-term level of 18.6 points. The expectations for sales prices in the industry increased to 10.3 points from 9.6 points in July.