Euro Zone Consumption Hit Hard by Iran War, ECB Says

Euro zone household consumption experienced a sharp decline in the initial weeks of the Iran war as consumer confidence plummeted, according to an article in the European Central Bank's Economic Bulletin. The ECB noted that while sentiment has since recovered slightly, it remains significantly below pre-war levels, contributing to modest overall economic growth. The consumption drop in April was twice the historical average and comparable to the impact of Russia's war in Ukraine in early 2022, suggesting a strong confidence channel in response to major shocks.