We need to go back to September 2014 to see consumer confidence as low as it was in April. Perceptions about the general economic situation over the next 12 months have weighed negatively.
Consumer confidence recorded the largest monthly reduction ever in April, reaching the lowest level since September 2014 due to the coronavirus, reveals the National Statistics Institute (INE) this Wednesday.
“In the last month, the reduction of the consumer confidence indicator resulted mainly from the tremendously negative contribution of expectations regarding the evolution of the country’s economic situation, the household’s financial situation and the perspectives regarding the major purchases,” explains INE in a statement, underlining that the indicator “registered in April the largest reduction in the series compared to the previous month, reaching the lowest value since September 2014.”
This September 2014 minimum is reached when comparing the three-month moving averages, which helps to smooth the impact of the magnitude of the pandemic. However, if April is isolated, this indicator reached its lowest value since May 2013. This analysis complements the reading of a “sudden and unexpected” moment, as the statistics office explains.
The greatest consumer pessimism lies in expectations regarding the general economic situation over the next 12 months and the major purchases, two components that in April reached historical lows of the respective series.