(BRUSSELS) - Confidence in the European economy fell more sharply than expected in April, slumping to the lowest point in two-and-a-half years, according to an EU survey on Wednesday.

The European Commission's eurozone economic sentiment indicator slid in April to 97.1 points from 99.6 in March, hitting the lowest point since August 2005 and falling short of economists forecast for 99.0 points.

The commission's economic sentiment indicator for the 27-nation European Union also fell to the weakest level since August 2005, dropping to 98.1 points in April from from 101.9 points in March.

Confidence was broadly weaker across all sectors of the economy, with only the outlook among consumers in the eurozone stable, albeit at a low level, the survey showed.

Although confidence weakened only moderately in regional heavyweight Germany, bigger declines were seen in other big European economies and plunged sharply in Britain.

Separately, the commission's monthly business climate survey also painted a dismal picture, falling to the lowest point since January 2006.

"The current level of the indicator still continues to suggest above historical average industrial production growth but the decline points to a weakening of the monthly growth rates in the second quarter," the commission said.

Text and Picture Copyright 2008 AFP. All other Copyright 2008 EUbusiness Ltd. All rights reserved. This material is intended solely for personal use. Any other reproduction, publication or redistribution of this material without the written agreement of the copyright owner is strictly forbidden and any breach of copyright will be considered actionable.