Portugal: Consumer confidence and economic sentiment deteriorate in December
January 3, 2018
Consumer confidence dropped for a second consecutive month in December, according to the latest survey of consumer sentiment released by the National Statistical Institute (INE) on 3 January. The indicator declined to 0.7 points, slightly above the 0-point threshold separating optimism from pessimism, and the lowest reading in three months. It was down from 1.7 points in November. The print reflected a deterioration in consumers’ perception regarding their personal financial situations and the general economic situation in the next 12 months. Consumers were more pessimistic regarding their ability to save over the same period. Conversely, consumers’ views over unemployment in the next 12 months improved by some measure.
The overall economic climate indicator also worsened in December, dropping to 1.9 points from 2.1 points in November—the lowest reading in seven months. Economic sentiment in the manufacturing sector was more upbeat due to positive assessments over global demand, and there was also more optimism in the trade sector over increasing activity. However, the gains in these two sectors were more than offset by a deterioration in sentiment in the construction and public works sectors caused by less favorable outlooks on new orders and employment.
Author: Nihad Ahmed, Economist