Spain: Consumer confidence drops to lowest level since May 2009
January 5, 2011
The index of consumer confidence produced by the National Credit Institute (ICO, Instituto de Credito Oficial) dropped to 64.6 points in December from 70.0 points in November. Moreover, the index remains 10.1 points below the level observed in the same month the previous year and marks the lowest level since May 2009. At the current level, the consumer sentiment index sits well below the 100-point threshold that separates optimistic from pessimistic territory. Gloomy consumer confidence is likely to remain a drag on private consumption in the months ahead. The deterioration in consumer sentiment was caused by increasing pessimism regarding the current situation (-4.7 points), as well as a drop in the expectations sub-index (-6.2 points) owing to consumers' pessimistic assessment in all three categories (general economic situation, households' situation and employment conditions).