Lisbon, Portugal street

Portugal Economic Sentiment May 2020

Portugal: Consumer sentiment climbs, business sentiment worsens in May

Consumer sentiment increased to minus 32.1 points in May from an over six-year low of minus 41.6 points in April as Covid-19-related lockdown restrictions started to be eased. Consumers turned less pessimistic over their own financial situation; their ability to purchase big ticket items; and the general economic environment in the year ahead. Households’ appraisal of their past economic situation, however, worsened—weighing on May’s overall increase.

In contrast, the three-month moving average of the economic climate indicator fell deeper into negative territory in May, coming in at minus 3.2 points from minus 0.7 in April—marking an over seven-year low. The downturn was broad-based, as pessimism deepened in the manufacturing, construction, trade and services sectors, with the latter falling to a record low.

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