Austria: Consumer confidence drops further into negative territory at the start of the new year
Consumer sentiment dropped to minus 2 in January, from a revised minus 1 in December (previously reported: +9). The large revision is due to a revision in the composition of the consumer confidence indicator at the European Union level in order to have a better measure for private consumption growth in member states. As a result, sentiment among Austrian households now remains entrenched in pessimistic territory.
Consumers regard the current time to be less suited to save, while they also became less rosy about the outlook on the next 12 months. Consequently, respondents are much more pessimistic regarding the labor market as their expectations on a rise in unemployment increased sharply. Consumers retained an optimistic view on the current financial situation of households and expect the financial situation to improve over the next 12 months, however.