According to data from March 2026, household sentiment registered a sharp decline, reflecting a significant deterioration in both perceptions of their own financial situation and expectations for the country's overall economy over the next 12 months.

This climate of uncertainty is fueled by external risks, namely instability in the Middle East and the conflict in Iran, which are introducing inflationary pressures and threatening economic recovery.

The economic climate indicator fell to 2.4% in March, down from 2.8% the previous month, with the price component most penalised by the perception that the global geopolitical context could force further increases in the cost of living.

Although the European Commission's sentiment indicator remains above the 100-point threshold (at 103.7), the disruptive events at the beginning of the year, including the impact of severe storms, have led institutions to adopt a more cautious stance. Given this context, the Bank of Portugal recently revised its macroeconomic scenario, cutting its 2026 growth forecast by 0.5 percentage points to 1.8%, with a persistently downward bias.