Euroarea consumer confidence index likely to have risen in October

Euro area’s consumer confidence index is expected to have continued rising in October. In the previous month, the consumer sentiment index had edged up in September, as was anticipated, following three straight declines. As there have been positive signs in several different national surveys, the index is expected to have improved further in October.

According to a Societe Generale research note, the index is likely to have risen to -7.5 from -8.2. This might be a healthy 0.6 standard deviation above the long-term average. Euro area’s consumer sentiment is likely to egde up further in the months ahead; however, in the longer-term, sentiment might be dampened as growth in employment slows and accelerating inflation might be a drag on real disposable income growth, added Societe Generale.