Consumer confidence and economic climate improved again in January

Consumer confidence and the economic climate indicator rose again in January, the National Institute of Statistics (INE) said on Tuesday.

Consumer confidence rose in December and January after declining in the previous four months, according to the Business and Consumer Survey.

The economic climate indicator increased between November and January, reversing the downward trend seen between July and October, with confidence indicators increasing in manufacturing, construction, public works and services and decreasing in trade.

According to INE, the evolution of the consumer confidence indicator in January “is the result of the negative contribution of all components”: the outlook for the future evolution of important purchases made by families, the economic situation of the country and the financial position of households, as well as views on the past evolution of the household’s financial position.

The balance of expectations regarding the further development of the economic situation in the country has increased over the past two months, “significantly in December,” after declining between July and November.

As for the balance of views on the further development of the financial situation of households, “it has also increased over the past two months after the decline observed in August-November.”

In turn, the balance of opinions about past price movements increased in January after declining in the previous two months, INE reported.

The balance of prospects regarding future price developments “increased significantly in January, resuming the upward trajectory that began in August.”

In manufacturing, confidence rose in January after falling in the previous month, reflecting positive contributions from all components: estimates of finished goods inventories, production prospects and views on the evolution of global demand.

Meanwhile, the construction and public works confidence indicator “rose in January after declining between October and December”, with developments in the last month reflecting positive contributions from two components – job outlook and order book estimates. “slightly in the latter case.”

In the business sector, the confidence gauge fell in January after rising between October and December, “more significantly last month.”

According to INE, the performance of this indicator in January was the result of a negative contribution from views on sales volume and estimates of the volume of “inventories”, while the company’s business outlook contributed positively.

In January, the confidence indicator decreased in wholesale and retail trade.

As for services, there was an increase in the confidence indicator in the period from November to January after a fall recorded in July-October, which reflects the positive contribution of all components: prospects for the development of demand, assessments of the company’s performance and opinions on the evolution of demand. order book, “which is more important in the latter case.”