Consumer sentiment rises to close to pre-pandemic levels. A modest increase in propensity to buy, however, leaves some uncertainty over the outlook on consumption.
It’s a been a quiet start to the week on the Eurozone economic calendar.
Economic data has been limited to today’s German consumer sentiment figures in the early part of the week.
Consumer Sentiment
In October, the GfK Consumer Climate Index climbed from a revised -1.4 to +0.3 versus a forecasted -1.6.
Both economic and income expectations were on the rise, along with propensity to buy.
The economic expectations indicator rose by 7.7 points to 48.5 points. As a result, the indicator was up 24 points when compared with the same month of last year.
For the income expectations indicator, a 6.9-point increase took the indicator up to 37.4 points. A higher value was last measured at 41.2 points in February 2020.
The propensity to buy indicator saw a more modest 3.1 points increase in the month, however.
As a result, consumer sentiment is higher than it has been for the last year and a half.
A higher value was last measured in April 2020, at 2.3 points.
Market Impact
Ahead of today’s figures, the EUR had risen to a pre-stat and current day high $1.17034 before hitting reverse.
In response to today’s stats, the EUR rose to a post-stat high $1.17014 before falling to post-stat and current day low $1.16723.
At the time of writing, the EUR was down by 0.14% to $1.16796.
Next Up
U.S consumer confidence figures for April. On the monetary policy front, ECB President Lagarde and FED Chair Powell are also scheduled to speak…
With over 28 years of experience in the financial industry, Bob has worked with various global rating agencies and multinational banks. Currently he is covering currencies, commodities, alternative asset classes and global equities, focusing mostly on European and Asian markets.