Austria: Consumer confidence moderates from recent highs in May
Consumer sentiment moderated in May, with the sentiment index easing to 11 from the over one-decade high of 13 sustained over the prior three months. However, the index remained firmly entrenched above the critical zero-point mark that separates optimism from pessimism among Austrian consumers.
Households’ sentiment regarding their personal financial situation in the last 12 months improved slightly, while their outlook for the next 12 months was unchanged. Regarding the general economic situation in Austria, however, consumers were less upbeat about the economy in the next 12 months and the past 12 months. Sentiment was further affected by a less positive outlook on labor market dynamics in the year ahead as more consumers expected an increase in unemployment. In addition, consumers held a less favorable outlook on price developments in the coming year , which was reflected in a pick-up in their propensity to save. Lastly, households expected to make fewer major purchases in the year ahead.