The Eurozone Consumer Confidence Index dropped in August to the lowest level in a year. Bert Colijn, Senior Economist at ING, explained that while the economy maintains a decent pace, worries among consumers are intensifying and warns that curbs the outlook for consumption in the months ahead.
“Data from recent months suggests that consumers are increasingly worried about unemployment in the months ahead. Indeed hiring plans of businesses seem to have levelled off somewhat as uncertainty about the business environment has increased and it seems very unlikely that unemployment will increase in the months ahead.”
“In fact, labour shortages are becoming an increasing problem for companies across the eurozone. If that is the largest worry that consumers face at the moment, they could be in for a pleasant surprise.”
“As the deadline for a deal about Brexit is coming closer, Italian budget concerns are still apparent and the trade dispute between the US and China is escalating, the overall economic picture is clouded by downside risks. Consumers may therefore adopt a “wait-and-see” approach in a year that could hold positive surprises on the job market.”