EU expresses concerns over economic confidence falling in August

The European Commission expressed concerns over the fall of economic confidence in Europe in August, particularly among industry and consumers, a European official said in a statement Thursday.
The Economic Sentiment Indicator (ESI) fell by 1.5 points to 100.6 in the euro area and decreased by 1.2 points to 104.6 in the 28-member EU, figures released by the European Commission showed on Thursday.
The worsened sentiment resulted from deterioration in retail trade, consumer, industry, and, to a lesser extent, services confidence. Construction confidence remained broadly unchanged.
Katainen, vice president of the European Commission said: "It is not a surprise following the disappointing second quarter growth figures and the geopolitical tensions that have marked this summer."
He added: "It nonetheless is a source of concern: without confidence, we will not see the pick-up in investment we need for a more robust recovery in growth and employment."
He stressed that there is an urgent need to use all available tools to support growth and promote investment in the EU, adding that "The momentum of structural reforms must be stepped up."
The eurozone's gross domestic product (GDP) remained unchanged from the previous three months in the second quarter of 2014, according to seasonally adjusted data released by Eurostat on 14 August.
The economy in the EU expanded 0.1 percent from the previous quarter, the statistics office said.