Portugal: Consumer confidence soars and economic sentiment improves in May
According to the recent survey of consumer sentiment released by the National Statistics Institute (INE) on 29 May, consumer confidence soared to 4.1 points in May from 3.0 points in April. It moved further up from the critical zero-point threshold that separates optimism from pessimism; the indicator has been in optimistic territory for more than one year now. The surge in optimism reflected an across-the-board improvement in all components underpinning the headline. Optimism among consumers regarding their personal financial situation over the next 12 months, the general economic situation over this time frame, and consumers’ perceptions over the unemployment situation in the coming year were all more upbeat.
The overall economic climate indicator edged up to 2.3 points in May from 2.1 points in April. Business sentiment in the manufacturing sector deteriorated again, due to reduced demand and a more moderated outlook on production. The construction and public works sector was less pessimistic as the outlook on current order books was more downbeat. On the other hand, sentiment in the trade and services sector was more upbeat, owing to improved outlooks on wholesale and retail trade. Furthermore, there was slightly more optimism in the services sector as the business situation and demand over the next three months perked up.