Eurozone: Consumers still wary of current economic conditions - ING
|Bert Colijn, Senior Economist at ING explained that the weak upward trend in consumer confidence is unlikely to push consumption much higher with weak job growth and higher oil prices.
Key Quotes:
“Consumer confidence increased from -8.2 to -8 in October, which was the second month of improving confidence in a row after declines in summer.”
“Confidence is still below June’s pre-EU referendum reading of -7.2 and well below the March 2015 peak of -3.6, indicating that consumers are still quite wary of current economic conditions.”
“As unemployment has stagnated at 10.1% since April and price growth is picking up somewhat because of higher oil prices, consumers do not have an awful lot to cheer about at the moment. This means that modest growth in domestic demand is likely set to continue, making a strong recovery of consumption growth in 4Q unlikely. That is consistent with the view of somewhat weaker GDP growth in 4Q of 0.2% QoQ.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.