Spain: Consumer confidence improves in February
March 3, 2011
The index of consumer confidence produced by the National Credit Institute (ICO, Instituto de Credito Oficial) rose from 70.7 points in January to 73.4 points in February, which marked the second consecutive increase. As a result, consumer sentiment sits 2.3 points above the level observed in the same month the previous year. That said, the index remains well below the 100-point threshold that separates optimistic from pessimistic territory, which suggests that private consumption will remain weak. 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 across all three categories (general economic situation, households' situation and employment conditions) bode well for an improvement in private consumption in the months to come.