The renewed deterioration in Eurozone's consumer confidence adds to concerns that the region's economy is likely heading for a deeper contraction in the fourth quarter as households will be extremely careful in their spending in the near team, IHS Global Insight Chief UK and European Economist Howard Archer said Friday.

The firm observed that economic fundamentals show that consumer spending across the the single-currency bloc has been hit hard by rising unemployment, generally muted wage growth and tight fiscal policy in many countries. The unemployment rate climbed for the seventeenth successive month and hit a record high of 11.6 percent in September.

High inflation, which has remained sticky around 2.5 percent in recent months, and the uncertainty related to the deepening debt crisis also contribute to the squeeze in spending.

Preliminary data from the European Commission showed that consumer confidence in the euro area plunged to a 42-month low of -26.9 in November from -25.7 in October, resuming if downward trend after rising fractionally in October.

Supporting data from the latest purchasing managers' surveys point to ongoing appreciable overall contraction in services and manufacturing activity and new orders, the economists noted.

RTTNews