Consumer confidence recovers

  • 30 August, 22

European consumer confidence recovered in August, both in the euro area and in the European Union (EU) as a whole, after having reached the lowest level ever in the previous month.

According to the provisional estimate of the Directorate-General for Economic and Financial Affairs (DG ECFIN) of the European Commission, in August consumer confidence recovered 2.1 points in the single currency area and 1.0 point in the EU, after in July it fell by 3.2 and 3.0 points, respectively, reaching the lowest level ever on record.

Despite the recovery recorded in August, consumer confidence, which now stands at -26.0 points in the EU and -24.9 points in the euro zone, remains below the previous historic low, recorded at the beginning of the Covid-19 pandemic, in spring 2020, notes DG ECFIN.

Icreased consumer confidence indicates economic growth in which consumers are spending money, indicating higher consumption. Decreasing consumer confidence implies slowing economic growth, and so consumers are likely to decrease their spending.

Cre: Portugalnews

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