Euro area preliminary consumer sentiment drops in November, housing spending growth likely to weaken in Q4

The preliminary euro area consumer sentiment print fell again in the month of November. Most top-tier euro area economic sentiment indices have been on an evident downwards path in 2018. The flash estimate for November showed that the indicator dropped 1.2 points to -3.9, which is the lowest reading since March 2017.

With evidence of a deceleration in momentum in the labor market to match the recent weakening of economic growth, and no shortage of political and social turbulence – from ongoing tensions between Italy and the European Commission to protests against fuel prices in France and Belgium – the continued softening of consumer sentiment is understandable, noted Daiwa Capital Market Research in a report.

The reading released today solidly implies the possibility that household spending growth would continue to be comparatively weak in the fourth quarter.

At 17:00 GMT the FxWirePro's Hourly Strength Index of Euro was neutral at -43.513, while the FxWirePro's Hourly Strength Index of US Dollar was neutral at -12.0261. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex