An index of sentiment in the 13 euro nations fell to 110 from 111 in July, the European Commission said. That compares with the 110.3 median forecast of 25 economists in a Bloomberg survey and is the lowest since February. Inflation held at 1.8% in August, according to a separate report. The decline in confidence adds to arguments for the ECB to refrain from raising interest rates next week.

The euro-area economy expanded less than forecast in the second quarter and growth in the manufacturing and service industries slowed in August as the pace of orders cooled.