The prospect of stronger growth in the euro-zone economy has been dented by a slew of bad news on the consumer sector. Not only did household spending contract by 0.4% in the last quarter of 2011 - pushing the annual growth rate back into negative territory - but more timely consumer indicators have also deteriorated. Unemployment has continued to creep higher, rising energy prices look set to keep inflation higher than previously hoped, and fiscal austerity continues to bite. Against this background, measures of consumer confidence not surprisingly point to further falls in spending over the coming quarters.
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