Consumer trust slows after peak in May. Economic situation stabilises

  • ECO News
  • 30 August 2018

After reaching the maximum value of the series between June and August, the consumer trust index started falling. The economic climate indicator stabilised, according to INE.

Consumer trust has declined in the past month. After reaching the maximum value of the series started in November 1997 the consumer trust index decreased between June and August this year. The economic situation stabilised in August after reaching the highest level since May 2002, according to figures released this morning by the Office for National Statistics (INE).

From 3.3 (the highest value recorded in May), the consumer trust index decreased to 2.8 (in June), 1.3 (in July) and, in August, it fell to -0,5.

The decline witnessed over the last three months can be explained by the indicator that measures consumer trust, which enhanced “the negative contribution of all components, especially the outlook for the evolution of unemployment and the economic situation in the country “, the report from INE shows.

The trust index in retail and shops decreased between June and August, a result of the opinion consumers had over the volume of sales in August. The index also fell in regards to construction and public works, the result of the opinions consumers had regarding the order books and the employment expectations. This descent is also influenced by the fact that the index hit, last month, its highest value since 2002.

Trust in the manufacturing industry increased in July and August, although it had been falling during the first semester of the year. This evolution mirrors a positive impact on the production and demand in the industry.

Regarding services, between May and August, the trust index increased, hitting its maximum value since 2001. Also noticeable is the effect this had on consumers: their evaluations of companies improved and there was an increase in orders.

(Updated at 11:57)