The closure of businesses and loss of work across Europe has shattered confidence at companies and households and left the economy in a deep slump.

The European Commission’s monthly sentiment index plunged by a record in April and is now near the lows recorded during the financial crisis more than a decade ago. Companies are worried about demand, employment expectations have dropped, and job concerns mean consumers are less likely to make major purchases.

The European Commission’s monthly sentiment index plunged by a record in April and is now near the lows recorded during the financial crisis more than a decade ago

The overall index, which goes back to 1985, dropped to 67 from 94.2 in March, just above the 2009 low of 65.5.

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The report provides a snapshot of the damage the coronavirus-related restrictions are having on the economy. Governments are aware of the economic cost and are desperately formulating plans to reopen businesses before the damage becomes irreversible.

Separate figures from the European Central Bank showed increased demand for loans from companies as they sought emergency financing to cover rent and wages. Consumer lending slowed as the pandemic hit demand for mortgages and big-ticket items such as cars.

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Some industries have taken a particular hit, such as airlines, hotels and restaurants. IAG SA said Wednesday it will slash the work force at its flagship British Airways by almost 30% to shrink the airline group for a downturn that could last for years.

First-quarter GDP data due this week will provide an insight into the early hit from the lockdowns. In Belgium, the economy shrank almost 4% in the period. Similarly gloomy figures are expected from France, Spain and Italy when they report on Thursday. The ECB will announce its latest policy decision also that day.