Consumer confidence has fallen in the euro zone’s three biggest economies as high inflation has shown no sign of abating as the European winter approaches, according to surveys released on Wednesday.
German consumer confidence is expected to hit a new record low for the fourth consecutive month heading into October, according to the GfK think tank, which said any recovery in consumer sentiment would be linked to controlling inflation.
The GfK’s consumer confidence index fell to -42.5 for October, down from a downwardly revised reading of -36.8 in September and expected a more moderate drop to -39.0 from analysts polled by Reuters.
Income expectations, in particular, contributed to the drop in confidence: this sub-index was at its lowest level since the survey began collecting data for a unified Germany in 1991.
French consumer sentiment also deteriorated once again in September, after a brief rebound in August halted seven straight months of decline on inflation concerns, a monthly survey by the country’s national statistics office, Insee, showed.
Italian consumers were similarly pessimistic ahead of the national election, with national statistics institute Istat’s confidence index falling in September to 94.8, just below the forecast of analysts polled by Reuters of 95.1.
Eurozone inflation is approaching double-digit territory, driven by energy costs as Russian gas supplies to the region become unreliable, raising the prospect of recession in the 19-nation currency bloc.
Source: CNN Brasil
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