Europe’s consumers remain cautious
CONSUMER confidence remained very low in May, European Commission data showed yesterday, with falling inflation expectations giving consumers a little extra hope.
The index rose to minus 19.4 in May from minus 20.2 in April in the EU as a whole, and to minus 19.3 from minus 19.9 in the Eurozone.
That leaves confidence still below the seven-month high recorded in March, and firmly below its long-term average of minus 12.8.
“The improvement in confidence may well have been helped by reduced inflation expectations given the recent appreciable retreat in oil prices,” said Howard Archer from IHS Global Insight, who also pointed to rising GDP figures as a fillip for the outlook.
“However, with the Greek situation heightening uncertainty and with economic fundamentals largely against the consumer, it is hard to see Eurozone consumers being anything other than cautious.”
Consumer spending makes up more than half of the Eurozone’s output, but households are hit by wage cuts, austerity and joblessness.