Austria: Consumer confidence deteriorates in October
Consumer confidence ticked down to reach minus 12 in October, from minus 7 in September, marking the lowest level since May. The index remains deep below the neutral zero-threshold which separates optimism from pessimism among consumers. The downturn was likely driven in part by the second wave of Covid-19 and renewed restrictions, and bodes poorly for private consumption at the outset of Q4.
The downturn was driven by households gloomier perspectives on their financial situation and the general economic situation for both the past and next 12 months. Moreover, expectations regarding the labor market deteriorated significantly.