Euro area consumer confidence has been rising dramatically since 2013, reaching historically high levels. Since the beginning of the year, it has improved further on the back of falling oil prices. However, since May, consumer confidence in the euro area has dropped from -3.7 to -7.1 and it is expected to remain unchanged in August on the back of a mixed picture from the real economy.
While concerns over the global outlook is likely to impact consumer confidence negatively, improving labour markets and a further decline in oil prices are likely to counterbalance.
