The consumer confidence indicator decreased in Portugal in February, new data from INE, the Portuguese statistics body, has found.
The indicator fell as a result of declines in expectations about the future development of major purchases buy households, the country’s current economic situation, and, to a lesser extent, opinions on past developments and expectations regarding household financial conditions.
The indicator had increased for two months in a row prior to February’s decrease, INE added.
Despite the decrease in consumer confidence, the balance of opinion on past price developments increased in January and February, having fallen for two months in a row, while expectations on future price developments rose significantly between December and February, following three months of declines.
Economic climate indicator
Elsewhere, the economic climate indicator rose slightly in February, having decreased in January, reflecting increased confidence in the services and manufacturing industries, and despite decreases in trade, construction and public works.
The improved confidence indicator in services was driven by positive assessments of demand and order books, while confidence in the manufacturing industry was boosted by improved production perspectives for the next three months.
In contrast, confidence in the trade sector declined as a result of negative assessments of sales volumes and business activity, while confidence in construction and public works was affected by negative employment perspectives.
Future selling prices
Business owners and entrepreneurs’ expectations regarding future selling prices improved in services, however they fell in manufacturing, trade, and construction and public works.
‘The consumer confidence indicator decreased in February, after increasing in the previous two months,’ INE said. ‘The decrease observed in the reference month was driven by negative contributions from all components: expectations on the future evolution of major purchases by households, of the country’s economic and, to a lesser extent, of opinions on the past evolution and perspectives on the future evolution of households’ financial situation.’ Read more here.
