Portugal: Consumer confidence dives in August, while the economic climate indicator stabilizes
August 29, 2019
Consumers turned more downbeat in August, with the consumer confidence index tumbling to minus 7.8 points from a nine-month high of minus 6.4 points in July. The latest print was underpinned by a broad-based deterioration. Households were more pessimistic about the general economic situation in the year ahead and were also less upbeat regarding their personal finances in the next 12 months. Moreover, consumers expressed less willingness to purchase big-ticket items over the next year. On the upside, households held more favorable assessments on their personal financial situation in the past 12 months.
Meanwhile, the overall economic climate indicator remained stable at 2.3 points in August, matching July’s print. Business sentiment worsened in the trade and services sectors on less upbeat outlooks on future demand and the business situation. On the flipside, confidence strengthened in the manufacturing sector, thanks to increased optimism on demand, future output and stocks of finished goods, and was also more upbeat in the construction and public works sector, owing to less downbeat assessments on current order books and employment prospects.
Author: Nihad Ahmed, Economist