Portugal: Consumer and business confidence broadly stable in January
January 31, 2020
Consumer sentiment weakened further in January, with the consumer confidence index inching down to minus 8.4 points from minus 8.3 points in December. The deterioration mainly reflected households’ marked increase in pessimism regarding the general economic situation in the country over the coming 12 months, as well as a slightly less optimistic view of their personal finances in the same period. However, households were less gloomy about the past year’s financial situation, as well as their ability to make major purchases in the next 12 months.
Meanwhile, the overall economic climate indicator crept up to 2.2 in January points from 2.1 in the previous month. Business sentiment was generally more positive, with confidence indicators improving in the manufacturing, construction and trade sectors. Contrastingly, the services sector saw a deterioration for the third straight month, reflecting dissipating optimism regarding the general business situation and demand levels.
Author: Stephen Vogado, Economist