Eurozone consumer sentiment seems to have risen in December

Consumer sentiment in the euro area is expected to have edged up in December. According to a Societe Generale research report, consumer confidence might end up where it was in December 2015 at around -5.7. Sentiment had dropped significantly at the beginning of 2016 amidst market turmoil. It rebounded steadily before being impacted by the U.K. referendum result. Subsequently, it steadily rebounded through the autumn, which should continue in December and into the New Year, stated Societe Generale.

In the future, consumers are expected to have increased belief in their employment prospects, which would stimulate confidence indices. But with wages rising at a moderate rate next year and inflation accelerating rapidly, real gross disposable income is set to decelerate. Growth in employment is also expected to slowdown. Political uncertainty is also expected to drive risk, with elections next year in Germany, France and the Netherlands.