PARIS (MNI) – Eurozone consumer morale surprised to the upside in
October with a modest recovery after four months of decline, according
to the European Commission’s preliminary estimate released Tuesday.
After a 6.6-point slide since May to a 40-month low in September,
the indicator regained 0.3 point to -25.6 – still nearly 15 points below
the long-term average. Most analysts polled by MNI had expected a
further decline of at least 0.3 point.
Since May, consumers’ medium-term outlook for the economy has
deteriorated markedly, also reaching a 40-month low in September and
exacerbating unemployment fears. Inflation worries began mounting from a
trough in June, weighing on buying propensity for major purchases.
While some leading indicators suggest the economy may be close to
bottoming out, any tangible recovery in the labor market is still a long
way away, and concerns over the sovereign debt crisis will continue to
cloud economic prospects. Under such conditions, a marked recovery in
consumer morale appears unlikely.
The final confidence figure for October, along with the other
components of the Commission’s comprehensive sentiment survey, are
scheduled for release next Tuesday.
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