Business and consumer optimism in the 17 countries that use the euro fell in August, reinforcing fears that the region's economy will slow in the months ahead as political leaders struggle to contain a crisis over government debt, AP reported.

The European Union's economic sentiment index issued Tuesday, August 30, fell 4.7 points to 98.3 - the sixth consecutive decline, bringing the indicator below its long-term average of 100. Germany, the eurozone's biggest economy, reported the largest drop, and it alone remains above the 1990-2011 average. The Netherlands was also saw a significant fall while Italy's slid somewhat less.

The reasons for the decline included gloomier views of the future among retailers, and among consumers afraid of losing their jobs, EU economic officials said in a statement accompanying the index numbers.

Additionally, industrial managers are concerned about weaker future export orders and inventories that may be overstocked for upcoming demand.

Economists and government officials say the economy is starting to be affected by financial market ups and downs caused by fears that some governments may not be able to repay their debts. Stock and bond markets fell sharply in early August amid fears that efforts by eurozone government leaders were not enough to contain the crisis.