Record unemployment rates and budget cuts implemented by governments have caused a fall in consumer confidence within the Eurozone, the European Commission (EC) reported on Thursday.

The indicator dropped to a negative 25.9 points from a negative 24.6 in August, an action also caused by dismissals and elevated inflation resulting from high oil prices.

In July, unemployment hit 18 million people in the Eurozone, an increase of 88,000 people compared to June, equivalent to 11.3 percent of the economically active population.

The Eurozone’s Gross Domestic Product (GDP) dropped .2 percent in the second quarter of 2012.