Portugal’s consumer confidence decreases in July

  • ECO News
  • 30 July 2020

The country's consumer confidence indicator fell in July, registering the biggest drop since April, a month marked by the confinement due to the new coronavirus.

Portugal’s consumer confidence saw a deterioration in the confidence indicator in July, with even the largest drop since April, a month marked by confinement due to the new coronavirus. However, in the opposite direction, the economic climate indicator increased between May and July.

“The economic climate indicator increased between May and July, after reaching the minimum value of the series in April,” says the National Statistics Institute (INE) this Thursday. “Confidence indicators recovered in all sectors, with emphasis on the Manufacturing Industry, which extended the greatest increase in the series registered in the previous month, after having recorded the minimum of the series in May,” INE adds.

In the so-called “Construction and Public Works and in Trade, the indicators recovered partially between May and July. The Services confidence indicator increased in June and July, after having presented the lowest value in the series in May.”

This information is positive, in the sense that it points to greater optimism on the part of entrepreneurs in the economic recovery after a period marked by a near standstill as a result of the measures adopted to prevent the spread of the new coronavirus.

Yet, INE shows the other, less positive side. “In July, the Consumer confidence indicator decreased, after recovering partially in the previous two months from the greatest reduction compared to the previous month recorded in April.”

“The reduction in the Consumer confidence indicator in July resulted from the negative contributions of the perspectives regarding the future evolution of the country’s economic situation and opinions about the past evolution of the household’s financial situation,” the Portuguese National Statistics Institute states.