The weakening in confidence was one of several pieces of data Thursday that suggest the eurozone economy remains fragile, adding further pressure on officials at the European Central Bank to pursue more aggressive policies to help lift the 18-nation economy out of its funk.
The European Commission said its European Sentiment Indicator, a broad measure of business and consumer confidence in the eurozone, weakened to 100. 6 in August from 102. 1 a month earlier, when it posted a surprising increase.
Business and consumer confidence across the 18 nations that use the euro deteriorated in August, as managers and households took a gloomier view of their economic prospects.
Separate data showed annual inflation in Spain cooled further, however, compounding worries that troubled countries on the eurozone's periphery may be at risk of experiencing a damaging bout of deflation, or persistently falling prices, which can hurt spending and worsen debt burdens.
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