Confidence in the eurozone’s economy fell further in April, data showed, strengthening the case for a cut in interest rates this week by the European Central Bank.

The eurozone is facing a difficult road out of recession and has seen a souring of the mood since March, after an optimistic start to the year was disrupted by events in Cyprus and Italy.

Morale in the 17-country bloc slipped 1.5 percentage points to 88.6, the European Commission said yesterday – worse than the decline to 89.3 expected by economists. Pessimism has set in even in Germany, which has performed better than most during the crisis, with sentiment worsening by 2.3 points.

Morale also fell in France and Italy, meaning the eurozone’s three largest economies are all witnessing a marked decline in the confid-ence that is crucial in getting the output in the eurozone growing again.

Confidence fell across the region from industry to retail trade, and sentiment in services fell 4.1 percentage points.

The Commission’s measure of the eurozone’s business cycle decreased 0.18 points to -0.93, lower than the -0.89 level expected by economists.

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