Portugal: Consumer and business sentiment fall to over six-year lows in April
April 29, 2020
Consumer sentiment plummeted to minus 41.6 points in April from minus 13.7 points in March, subsiding to the lowest level since May 2013. The fall came amid widespread pessimism generated by the coronavirus pandemic, with consumers’ outlook for the coming year regarding their own financial situation, the economic situation of the country and their ability to make major purchases all darkening significantly. Moreover, household’s view of their past economic situation became more pessimistic in the light of their current economic travails.
Concurrently, the overall economic climate indicator fell into negative territory for the first time in over six years, hitting minus 0.7 in March from plus 1.9 in February. The downturn was broad-based, reflecting the growing concern regarding the pandemic’s impact on the economy. Pessimism deepened in the construction and manufacturing sectors, while sentiment turned negative and fell to the lowest recorded level in both the trade and services sectors.
Author: Stephen Vogado, Economist