Berlin - Economic confidence in Europe has plunged to a 24- year low, a survey released Thursday showed, adding to the pressure on the European Central Bank
(ECB) to cut rates again in the face of the deepening global recession.

The European Commission's closely watched economic sentiment indicator for the 16-member eurozone slumped from a downward revised reading of 67.2 in January to a lower-than-forecast 65.4 in February.

This represents the indicator's lowest level since the survey began in 1985. Analysts had predicted that the index would fall to 68.5 in February from an original reading of
68.9 in January.

The release of the commission's survey comes as part of the buildup to next week's ECB meeting with the Frankfurt-based bank widely expected to deliver another hefty rate cut to help spur economic growth in the eurozone.

"Fears over unemployment, losses in financial wealth and uncertainty over the severity of the recession continue to overshadow the positive impact of lower inflation," said ING economist Martin van Vliet.

He went on to say that the survey "will likely cement expectations of a 50-basis-point cut at next week's ECB policy meeting."

Helping to lead the fall in the economic sentiment survey was a slump in confidence in the eurozone's key export industries with consumer confidence also sliding from minus 31 to minus 33. (dpa)