Consumer sentiment in the euro area rises again. Today’ figures of the European Commission’s flash euro area consumer confidence index implied that sentiment was a bit rebounded in September. The index rose by 0.6 points to a four-month high of -6.5. This indicator has effectively oscillated around a sideways trend since February.
In the prior month, the index had dropped by a larger-than-expected 0.5 points. Given persisting uncertainties regarding the economic outlook and geopolitical risks, consumer confidence is unlikely to break out of its recent range for a while, noted Daiwa Capital Market Research in a report.
“And, in line with the recent pattern, we expect the index to fall back to -7.0 or below next month. And while today's reading left the quarterly average in Q3 at the highest since Q418, we do not expect an acceleration in private consumption this quarter from the 0.2 percent Q/Q rate recorded in Q2”, added Daiwa Capital Market Research.
