Portugal: Consumer confidence dives to nearly two-year low and economic sentiment dips again in January
January 30, 2019
According to the National Statistics Institute’s (INE) survey of consumer sentiment released on 30 January, consumer confidence continued to worsen in January, marking the fourth consecutive month of deterioration. The index slid to minus 7.9 points, down from minus 7.2 points in December; the lowest print since February 2017. Driving the downturn in January were households’ less optimistic outlook on their personal financial situation over the next 12 months, along with increased pessimism regarding the general economic situation over the same time frame and reduced willingness to make major purchases over the next year. On the flip side, consumers held less negative views on their personal finances over the last 12 months.
Meanwhile, the overall economic climate indicator inched down to 2.1 points in January from 2.2 points in December. Looking at a breakdown of the sectors, less favorable outlooks in the manufacturing, construction and public works, and trade sectors underpinned the slight decline. On the upside, business sentiment in the services sector was more upbeat in January compared to the previous month.
Author: Nihad Ahmed, Economist