Eurozone slump deepens

eUROPeAN firms became more pessimistic about the economy as confidence among their British counterparts grew for the second month in a row.

economic optimism among the Continent’s industrial companies and retail bosses hit a two-year low this month, according to official figures from the european Commission.

They were downbeat about their order books, with the commission saying expectations for production rates had ‘deteriorated significantly’.

The report’s authors added: ‘ This reflected households’ more pessimistic expectations about their future financial situation and, in particular, the general economic situation.’

The glum update was in marked contrast to the latest research by High Street lender lloyds, which said UK business confidence had risen in April.

lloyds said confidence had improved in nine of 12 regions in the country, particularly in london, the West Midlands and the North West.

It said confidence rose four points to 14pc. The figure is calculated from companies’ views on their own prospects and those of the wider UK economy. The highest figure recorded was 24pc in 2002.

Hann-Ju Ho, a senior economist at lloyds, said yesterday: ‘firms appear more positive about both their own trading prospects and the broader economy.’