After the collapse in April, a month marked by the confinement decreed to halt the spread of the pandemic, the consumer confidence indicator has been recovering.
The consumer confidence, but also of businesses, continues to grow. After the tumble in April, a month marked by the confinement decreed to halt the spread of the new coronavirus pandemic, it has been recovering since and has developed positively this August, according to data from the National Statistics Institute (INE). With businesses, there has been a recovery in all sectors.
“In August, the consumer confidence indicator increased, resuming the recovery profile started in May, after the greatest reduction compared to the previous month recorded in April,” said the INE, explaining that the positive outlook for the economy contributed to this development.
“The increase in the consumer confidence indicator in August resulted from the positive contributions of the perspectives regarding the future evolution of the country’s economic situation and of the household’s financial situation, as well as opinions about the past evolution of the household’s financial situation.” However, “on the contrary, expectations regarding important purchases have made a negative contribution,” added the National Statistics.
As for “the economic climate indicator increased between May and August, after reaching the minimum value of the series in April. Confidence indicators recovered in all sectors, Manufacturing Industry, Construction and Public Works, Trade and Services,” stated the Portuguese Institute.
In the case of manufacturing, the confidence boost is due to “the positive contribution of the opinions on the global demand in the last three months, while the firm’s production perspectives over the next three months and opinions on current stock of finished products presented negative contributions.”
In construction and public works, the positive contribution came from both components, i.e. from assessments on the order book and employment prospects, “more significant in the first case”, noted the INE. The limiting factor for companies in the area ceased to be the “difficulty in hiring qualified personnel” and moved to the “others” category.
In trade, views on sales volume made a “significant positive contribution” to the sector’s confidence indicator. However, the contribution from the company’s business outlook for the next three months was negative.
In contrast, views on company activity made a positive contribution to the services confidence indicator, as did assessments on the evolution of the order book. Prospects for demand developments contributed negatively.
(News updated at 10h54 with more information)