Portugal: Consumer confidence remains in pessimistic territory, while economic sentiment stabilizes in August
According to the National Statistics Institute’s (INE) survey of consumer sentiment released on 30 August, consumer confidence showed marginal improvement but remained entrenched in negative territory. The indicator inched up to minus 1.3 points in August, from minus 1.4 points in July. August’s reading reflected an improvement in two out of the four components and a deterioration in the other two. Consumers’ sentiment regarding their personal financial situation over the next year rose, along with their perception on their savings over the next 12 months. On the other hand, households’ perceptions over the country’s general economic situation in the next 12 months dropped significantly, while their outlook on the unemployment situation over the next year worsened for the third consecutive month.
The overall economic climate indicator in August matched July’s 2.5 points. A breakdown of the sectors shows a brighter outlook in both the manufacturing and trade sectors, while the construction and public works, and services sectors saw a deterioration in sentiment. A less pessimistic outlook on demand for order books underpinned the rise in sentiment in the manufacturing sector, while a more upbeat future business situation helped drive the improved sentiment in the trade sector. Meanwhile, a downturn in the outlook for employment over the next three months led to a fall in confidence in the construction and public works sector. A deterioration in the business situation and the outlook on demand/order books over the past three months fueled the decline in the services sector.