Spain: Consumer confidence improves in January
February 3, 2011
The index of consumer confidence produced by the National Credit Institute (ICO, Instituto de Credito Oficial) jumped from 64.6 points in December to 70.7 points in January. Despite the improvement over the previous month, consumer sentiment index sits 8.0 points below the level observed in the same month the previous year and remains well below the 100-point threshold that separates optimistic from pessimistic territory, which suggests consumer confidence will remain a drag on private consumption. The improvement in consumer sentiment was broad-based as both, the current situation and the expectations sub-indexes improved over the previous month. Favourable expectations regarding all three categories (general economic situation, households' situation and employment conditions) bode well for an improvement in private consumption.