Portugal: Consumer confidence improves in December, while economic sentiment inches down
January 3, 2019
According to the National Statistics Institute’s (INE) survey of consumer sentiment released on 3 January, consumer confidence rose slightly in December but remained in pessimistic territory. The index fell to minus 2.7 points in December from minus 3.4 points in November and marked the sixth consecutive month that it has been in pessimistic terrain. December’s upturn was driven by greater optimism among households regarding their personal financial situation in the next 12 months, along with a more favorable outlook on the unemployment situation. Moreover, consumers were less pessimistic regarding their savings ability. Conversely, consumers’ views over the general economic situation in the next year deteriorated markedly, swinging from positive into negative territory.
Meanwhile, the overall economic climate indicator inched down to 2.2 in December from 2.3 in November. Looking at a breakdown of the sub-sectors, the slight dip was underpinned by less favorable business sentiment in the trade and service sectors. The downturn in sentiment more than offset a rise in confidence in the construction and public works, and manufacturing sectors, albeit both remained in pessimistic territory.
Author: Nihad Ahmed, Economist