Economic activity decreases. Economic climate stabilises

The economic activity indicator plunged and the economic climate indicator stabilised, according to the most recent data published this Monday by Statistics Portugal (INE).

“The economic activity indicator, available until December, decreased and the economic climate indicator, already available for January, stabilised”, INE states. Last week, data from the Bank of Portugal about January pointed to a slower growth of the economic activity since February of 2017, while private consumption evolved at the lowest rate since January of last year.

As for the Euro Area, and reporting back to January, “the consumer confidence and the economic sentiment indicators increased”, INE also discloses.

In Portugal, the economy increased 2.4% in the last three months of last year (against 2.5% in the previous quarter), increasing 0.7%, quarter-on-quarter (0.5% in the previous quarter). As for unemployment, it retrieved and employment increased.

According to the Monthly Economic Survey, “the quantitative indicator of private consumption decelerated in December due to the contribution of both components, durable and non-durable consumption”. As for the Gross Fixed Capital Formation (GFCF), it decreased in the last month of the year, “resuming the downward movement observed since June”. The evolution was a result of “the less intense positive contributions of the machinery and equipment and construction components, while the transport material component presented a negative contribution”, INE highlights.