Austria: Consumer confidence picks up but remains in negative territory in August
Consumer confidence rose to minus 31.0 in August from July’s minus 33.0. However, the index remained entrenched in deeply pessimistic territory.
The headline improvement was driven by less downbeat views on households’ financial situation in the past and next 12 month, as well as less pessimistic attitudes towards the economic situation in the same time frames. However, consumers were less likely to make major purchases at present, and more inclined to save at present and over the next 12 months.
Analysts at the EIU added:
“A cut in Russian gas supplies to Germany through the Nord Stream 1 pipeline has implications for Austria, as some of this gas is re-exported to Austria. Energy rationing in Austria is not our baseline forecast, but it is a high-possibility, high-impact scenario. These concerns will raise gas prices (and inflation) and dampen already weak household and business confidence. Private consumption will stall […].”