Portugal: Consumer confidence recovers lost ground in October, while economic sentiment stabilizes
According to the National Statistics Institute’s (INE) survey of consumer sentiment released on 30 October, consumer confidence improved in October from the previous three months but remained in negative territory. The indicator rose to a four-month high of minus 0.4 points in October, after coming in at minus 1.5 points in September. October’s print reflected an across-the-board improvement. Consumers were more optimistic about both their personal financial situation and the general economic conditions over the next year. Households’ outlook on unemployment also became more upbeat in October compared to the previous month, and they held more favorable views on their savings ability in the next 12 months.
The overall economic climate indicator remained stable in October from the previous month at 2.4. Looking at a breakdown of the sub-sectors, the construction and public works, and trade sectors reported improved outlooks. Less pessimistic views on current order books and more upbeat perceptions on the employment situation in the next three months led to a brighter outlook in the construction and public works sector. Meanwhile, greater optimism on the business situation in the next three months underpinned a rise in confidence in the trade sector. The manufacturing and services sectors, however, held less favorable sentiments on their prospects. Less optimistic views on demand and overall business conditions in the next three months drove the downturn in sentiment in these sectors.