The Weekly Brief
01-07-2024
Thought of the week
The eurozone economy continues to show signs of improvement following a challenging 2023. The cost-of-living shock is fading, economic growth has exceeded expectations, the labour market remains resilient, and the European Central Bank has begun cutting interest rates. Consumer confidence is on the rise, reaching its highest level since February 2022 in June despite uncertainties around the EU elections. This boost in sentiment reflects a broader sense of stability and rising optimism among households. As we move through the year, increasing confidence and real wages should provide a catalyst for European consumers to go out and spend some of the savings accumulated during the pandemic. We therefore remain optimistic that improved consumer sentiment will set the stage for a recovery in consumption.
Rising consumer confidence points to a recovery in spending
% change year on year, 6-month moving average (LHS); index level (RHS)
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