The European Commission’s flash euro area consumer sentiment ticked higher in July. The indicator released today further added to the decidedly mixed economic data lately, further underpinning the view that the Governing Council will judge it appropriate to wait until September when it has updated staff economic forecasts before easing policy, noted Daiwa Capital Market Research in a report.
Consumer sentiment rebounded unexpectedly at the beginning of the third quarter, with the headline index rising 0.6 points to -6.6 in July. While this is the second highest reading in 2019, it still maintained the widely sideways trend seen since the beginning of 2019 and was well down on levels seen this time in 2018.
“So, having likely moderated in the second quarter, today's survey suggested that household spending growth is likely to remain relatively subdued in the third quarter too”, added Daiwa Capital Market Research.
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