Consumer confidence in the euro area rose at the beginning of the second quarter. Most euro area economic sentiment surveys followed a downward trend in the first few months of this year. Indeed, in January having reached 1.4, the highest level since 200, the European Commission consumer confidence index continued to be at 0.1 in February and March, a level above the fourth quarter average.
The flash indicator for April showed confidence index rising 0.3 percentage points to 0.4. After some disappointing hard private consumption indicators of late, at this level, the index seems to give some reassurance that there is no marked deterioration in spending underway. So, while private consumption in the fourth quarter had already decelerated to 0.2 percent, the weakest rate since first quarter of 2014, euro area retail sales figures for January and February indicated towards a fall in High Street spending in the first quarter, and car registration data hinted at a moderation in growth in demand for new vehicles in the first quarter too, there appears to be no cause for great alarm, noted Daiwa Capital Market Research in report.
“Like all other top-tier survey indicators, the consumer confidence index signals ongoing growth in economic activity ahead”, added Daiwa Capital Market Research.
At 20:00 GMT the FxWirePro's Hourly Strength Index of Euro was neutral at 31.6824, while the FxWirePro's Hourly Strength Index of US Dollar was highly bullish at 130.208. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
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