Portugal: Consumer confidence slips to six-month low in June, while economic sentiment improves slightly
June 28, 2018
According to the recent survey of consumer sentiment released by the National Statistics Institute (INE) on 28 June, consumer confidence fell to a six-month low of 1.3 points in April, down from 4.1 points in May. It moved closer to the critical zero-point threshold that separates optimism from pessimism; the indicator has been in optimistic territory for more than one year now. The downturn in sentiment reflected less upbeat readings in all components underpinning the headline. This included a significantly less optimistic outlook on the general economic situation in the country over the next 12 months, along with reduced optimism regarding households’ financial situation over the same time span. In addition, households were more pessimistic about their savings ability over the next 12 months. On the other hand, consumers held a more positive view over the unemployment situation in the next year.
Meanwhile, the overall economic climate indicator inched up to 2.4 points in June from 2.3 points in May. Business sentiment in the manufacturing sector deteriorated for the sixth month running owing to reduced demand. The outlook in the trade sector was also slightly less optimistic in June due to less upbeat sentiment on wholesale and retail trade. Conversely, sentiment in the construction and public works sector was less pessimistic as the outlook on both the current order books and employment over the next three months were more upbeat. In addition, optimism was up in the services sector, thanks to an improved business situation and demand over the next three months.
Author: Nihad Ahmed, Economist