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Analysis

Heading towards a recovery in household consumption in the Eurozone

Household spending intentions have been improving in the Eurozone for two years, and in January 2026, they returned to their early 2022 levels, despite a much more gradual improvement in the household confidence index (see our January EcoCharts - Eurozone: A greatly improved outlook). Households’ fears about unemployment and living standards in general have weighed on consumption and have contributed to its moderate growth. Moreover, these fears have continued to dampen consumer sentiment. However, these concerns are easing and no longer seem to be hindering a potential rebound in consumption, as evidenced by purchasing intentions.

EURO AREA HOUSEHOLD’S PURCHASE INTENTIONS ARE REBOUNDING

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