Economics

Confidence in Euro-Area Economy Drops on Supply Squeeze, Virus

  • Sentiment gauge fell to 117.5 in August; more than expected
  • Inflation pressures are building in industry and retail

Pedestrians near the U-Bahn underground railway entrance in Alexanderplatz square in Berlin.

Photographer: Krisztian Bocsi/Bloomberg
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Confidence in the euro-area economy slipped for the first time this year, suggesting that supply disruptions and the resurgent pandemic risk damping the recovery.