The consumer confidence index, which is surveyed quarterly, decreased from -41.7 points to -46.6 points in the fourth quarter. It hit its lowest level since 1972, when the survey began, as the Secretariat of State for Economic Affairs (Seco) announced on Tuesday.
Reasons: On the one hand, consumers’ expectations for overall economic development over the next twelve months continued to deteriorate. Seco, on the other hand, writes that households will rate their financial situation significantly more negatively than in the previous quarter. It was rated bad only once in the early 1990s.
Prices continued to rise
According to Seco, the development of prices may have contributed significantly to the negative assessment of their financial situation. As is known, inflation rose above 3 percent in June for the first time in many years and has remained above this level since then. Inflation rates are significantly higher for individual product categories.
In contrast, respondents continue to assume that the labor market will do well. According to Seco, job security was practically unchanged compared to the last survey in July. And the further development of unemployment figures is considered slightly less optimistic, although the corresponding sub-index is still well below the long-term average.
Survey conducted four times a year
The survey is carried out with over 1000 people in January, April, July and October. For example, subjective assessments and expectations regarding the general economic situation, financial situation, development of prices, job security and more are collected. A total of eleven questions are asked. (pbe/SDA)