Portugal: Consumer confidence drops in December, with business sentiment tepid
January 2, 2020
Consumer sentiment slumped in December, with the consumer confidence index slipping to minus 8.3 points from minus 6.9 points in November. The deterioration mainly reflected households’ increased pessimism regarding the general economic situation in the country over the next 12 months, as well as in their ability to make major purchases in the same period. Furthermore, households viewed their personal finances in the coming year in a less positive light, although they were somewhat less gloomy regarding their previous year’s financial situation.
Meanwhile, the overall economic climate indicator was unchanged at 2.1 points for the third month running and thus remained at the lowest level in over two-and-a-half years. Business sentiment was mixed across the board, with confidence indicators improving slightly in the manufacturing and construction sectors, while trade and services sentiment fell. The services sector saw the largest deterioration, reflecting diminished optimism around the general business situation and demand levels.
Author: Stephen Vogado, Economist