European stock markets closed narrowly mixed yesterday, consolidating recent gains after weak US data raised fresh doubts over the strength of the economic recovery, dealers said.

They said news that US durable goods orders fell again in June added to growing concern that the US economy was slowing, with investors keenly awaiting US second quarter growth figures due tomorrow.

The figures follow data over the past month pointing to a slowdown in the world’s largest economy – retail sales, new home construction, manufacturing, inventory building and exports were all weaker than expected.

Consumer confidence, the key to demand and growth, in July plunged to its worst level in five months.

In London, the FTSE 100 index of leading shares closed down 0.86 per cent at 5,319.68 points. In Paris, the CAC 40 inched up 0.11 per cent to 3,670.36 points while in Frankfurt the DAX dropped 0.46 per cent to 6,178.94 points.

Dealers said a hesitant opening in New York left the European markets without a lead following the weak US durables goods release.

The indicator, “although very volatile, remains important in determining market direction,” said Christian Parisot, an economist at Aurel in Paris.

Dealers said the figures once again undercut mostly good second quarter corporate results, with investors trying to square the conflicting leads.

On Wall Street, share prices were lower, with the blue-chip Dow Jones Industrial Average down 0.19 per cent at around 1600 GMT, with the tech-rich Nasdaq Composite off 0.62 per cent.

Dealers said figures showing that new durable goods orders – for items such as planes, cars, refrigerators and computers – fell one per cent in June after losing ground in May unsettled investors.

“The uneven recovery continues as firms are purchasing big-ticket items cautiously,” said Joel Naroff of Naroff Economic Advisors.

Elsewhere in Europe, Amsterdam dropped 0.90 per cent, Brussels lost 0.48 and Milan shed 0.36 per cent while Madrid and Swiss stocks were virtually unchanged.