Spain: Consumer confidence rises
July 4, 2011
The index of consumer confidence produced by the National Credit Institute (ICO, Instituto de Credito Oficial) increased to 74.9 points in June from 74.3 points in May, marking the third consecutive month of gains in consumer confidence. As a result, consumer sentiment sits 9.0 points above the level observed in the same month the previous year. That said, despite the June increase, consumer confidence remains below the 100-point threshold that separates optimistic from pessimistic territory,. The slight improvement in consumer sentiment was driven by a better assessment of the current situation sub-index, especially in current employment, owing to the beginning of the summer season that brings about temporary hiring in the tourism sector. However, expectations deteriorated amid worsening perceptions of the economic outlook and employment, which suggests that private consumption going forward will remain weak in the months ahead.