Portugal: Consumers turn more optimistic in April, while the overall economic sentiment indicator remains steady
April 29, 2019
Consumers turned more optimistic in April, with the consumer sentiment index rising to minus 7.3 points, up from March’s over two-year low of minus 10.7 points. April’s print reflected an across-the-board improvement. Consumers were less markedly pessimistic over the general economic situation in the year ahead and held a significantly more upbeat outlook on their personal finances in the same time frame. Respondents were also more optimistic about making major purchases in the next 12 months, and upgraded their assessments on their household financial situation in the past year.
The overall economic climate indicator remained stable at 2.3 points in April. On the one hand, business sentiment rose notably in the construction and public works, and services sectors, while improving only marginally in the trade sector. On the other hand, confidence fell in the manufacturing sector. While improved employment prospects drove the rise in sentiment in construction and public works, a brighter assessment on demand over the past three months lifted sentiment in the services sector. Meanwhile, a less upbeat outlook on demand and future production caused confidence to deteriorate in manufacturing.
Author: Nihad Ahmed, Economist