Eurozone Shoppers Hesitate Amid War-Driven Uncertainty

European Central Bank (ECB) researchers have pinpointed the cause of the recent slowdown in eurozone consumption: uncertainty sparked by the Middle East war.

The ECB's economic bulletin, published on Monday, reveals that higher-income households are pulling back from discretionary purchases, such as travel and big-ticket goods, due to rising unease about the future.

This trend is evident in the decline of eurozone consumer confidence, which fell by 12 points between February and April after the war began. Spending momentum also 'softened materially' during this period.

The pullback has not been uniform, with essential spending on housing and food remaining relatively steady, while transport costs pushed nominal energy spending higher.