EURO Area Consumer Confidence - Confidence SLUMPSEURO Area Consumer Confidence - ECONOMICS:EUCCI
The lower the minus figure on this chart the better the confidence is in the EU area (closer to zero the better).
Rep: -16.10 🚨 Worse than Expected🚨
Exp: -14.30
Pre: -15.00
The Chart
▫️ We have a long term general downtrend in EU Consumer Confidence since 1985.
▫️ Prior to recessions we formed lower highs (red arrows on the chart)
▫️ We have not made a new all time high since Jan 2000
▫️ Confidence has currently stalled and turned slightly lower coming in lower than expectations of -14.3 and instead coming in at -16.10.
What's driving the data and how to read it?
The Consumer Economic Sentiment Indicator (Consumer ESI) gauges the optimism levels among consumers in the EU. Conducted through phone surveys, the indicator encompasses 23,000 households, with variable sample sizes across the region. The survey includes questions on the current economic and financial conditions, savings intentions, and expectations related to consumer price indexes, the general economic situation, and major purchases of durable goods.
The Consumer ESI is measured on a scale from -100 to 100, where -100 represents an extreme lack of confidence, 0 signifies neutrality, and 100 indicates an extreme level of confidence.
Final Word
The ESI indicator provides valuable insights into consumer sentiment, reflecting perceptions and expectations that can influence economic behavior and decision-making in the EU.
Consumer sentiment is low in Europe with sentiment remaining below March 2022 levels with little sign of recovery as it stands coming in lower than expectations.
Obviously with the ongoing conflict in Ukraine, EU migrant crisis and Germany having full year of GDP decline for 2023 (Europe's largest economy), one can understand why the sentiment is so low. WE can watch for a turning point and a new high lower than -15 for a change in the right direction.
PUKA
