Consumer confidence drops to early pandemic levels
According to Statistics Portugal's(INE) business and consumer surveys, the household confidence indicator fell in September and October, to a value close to that of April 2020.
Consumer confidence in Portugal has fallen back in the past two months to the same levels that were seen at the start of the Covid-19 pandemic, and business sentiment worsened in October, now affecting several sectors, according to the INE.
According to Statistics Portugal’s(INE) business and consumer surveys, the household confidence indicator fell in September and October, to a value close to that of April 2020, at the start of the pandemic.
The balance of consumer opinions on past price developments increased in these two months, renewing the maximum value of the series, according to INE, following the upward movement that began in March last year.
As for companies, the surveys showed a decrease in the economic climate indicator between August and October, following the decline that began in March, reaching the lowest since April 2021.
The confidence indicators for manufacturing, construction and public works, trade and services also droppedin relation to September.
In manufacturing, the confidence indicator decreased in October, falling to the lowest level since March 2021.
This decline results from the negative contribution of all components, opinions on the evolution of overall demand, assessments regarding stocks of finished goods and production perspectives, more intense in the first case.
The confidence indicator, in the last two months, decreased in the groupings of intermediate goods and investment goods and increased in the grouping of consumer goods.
The balance of opinions regarding overall demand decreased in October, contradicting the increase in September, as well as opinions regarding domestic demand, considering companies with production oriented to the domestic market, deteriorated in October, after the recovery of September.
On the other hand, opinions regarding external demand, considering companies with production oriented to the external market, worsened in September and October, after the recovery seen in the two previous months.
The balance of expectations regarding selling prices increased in September and October, after having decreased in the previous four months, standing at a level below the series’ maximum observed in March, an increase recorded in intermediate and capital goods.
