Concerns for growth as Eurozone consumer confidence edges down to 13-month low
Consumer confidence in the Eurozone has fallen to a 13-month low this month.
Figures released today by the European Commission reveal the so-called flash consumer confidence index – an early estimate of data to be finalised at the beginning of next month – dropped to a score of minus 9.7. It marks the third consecutive month of decline.
However, it is still above the long-term average of minus 12.8.
While confidence is not expected to collapse, some economists believe it will remain subdued.
"Surveys of hiring expectations point to a slowdown in the labour market recovery while the boost to consumers’ spending power from lower oil prices also looks set to continue to fade. The big picture is that we think that slower growth in consumer spending will contribute to a slowdown in Eurozone GDP growth from 1.5 per cent last year to about 1.2 per cent in 2016," said economist Andrew Wishart from Capital Economics.
