Austria: Consumer sentiment drops further in December
Consumer confidence dropped to a 10-month low of minus 9.0 in December from minus 4.0 in November. Consequently, the index moved further south of the neutral zero-point threshold and continued to indicate that pessimism prevailed among Austrian consumers.
The deterioration in sentiment came on the back of worsening views on the general economic climate in the next 12 months. Views on the Austrian economy in the past 12 months also deteriorated markedly. Moreover, sentiment towards making major purchases in the year ahead turned more pessimistic, while consumers’ propensity to save at present increased.
Analysts at the EIU added:
“Private consumption will also be supported by the continued unwinding of historically high savings accumulated in 2020. However, with international tourism playing such an important role in the Austrian economy, GDP growth in 2022 will continue to be affected by the pandemic.”