Austria: Consumer confidence drops to seven-month low in June
Consumer confidence dropped from 11 in May to 9 in June, marking the lowest reading since October of last year, and reflecting a slightly less upbeat view on the general economic situation in Austria. However, the index remained firmly entrenched above the crucial zero-point mark that separates optimism from pessimism among consumers.
A breakdown of sentiment drivers showed that while consumers grew more positive regarding their financial situation in the next 12 months, their outlook on the general economic situation over the past 12 months and the next 12 months became slightly less rosy. The less upbeat sentiment regarding the expected trajectory of the Austrian economy was contrasted by more optimism regarding the labor market—this comes amid a falling unemployment rate, which dropped to a near five-year low in April, the latest month for which data is available. Subsequently, consumers’ propensity to save decreased slightly, and they became more willing to make major purchases. Consumers grew slightly more negative about the inflation outlook for the year ahead.