Consumer confidence and economic climate continue partial recovery in June

in News · 04-07-2020 16:00:00 · 0 Comments

Consumer confidence and economic climate indicators maintained in June the “partial” recovery that began in May, after the lows reached in April due to the covid-19 pandemic, the National Statistics Institute (INE) announced on 29 June.

“The economic climate indicator increased in May and June, especially in the last month, after reaching the minimum value of the series in April. The confidence indicators recovered in all sectors, with emphasis on the manufacturing industry, which registered the greatest increase in the series, after having recorded the minimum of the series in the previous month”, point out the INE Business and Consumer surveys.

According to the statistics institute, in construction and public works and commerce, the indicators “partially recovered” in May and June, with the confidence indicator in services increasing in June, after having presented the lowest value in the series in the previous month.

According to the INE, the periods for gathering information for business surveys took place between 1 and 16 June, in the case of the consumer survey, and between 1 and 23 June in the case of business surveys, “coinciding with the third phase of the 'deconfiguration' plan (started on 1 June) and with the final phase starting on 15 June”.

In this context, and to show very short-term changes, the institute says that the analysis carried out is based “exclusively on the actual monthly values ??(raw or seasonally adjusted data)”.

In June, the increase in the consumer confidence indicator resulted from the positive contribution of all components, perspectives regarding the evolution of the country's economic situation, the financial condition of the household and the realisation of important purchases, as well as opinions on the evolution past financial situation of the household.

Regarding the behaviour of the manufacturing industry confidence indicator - which registered in June “the greatest increase in the series, after having decreased between February and May, having reached the historical minimum of the series following the abrupt fall registered in April” - reflected the contributions positives of all components, balance of appraisals related to the evolution of global demand, opinions on the stocks of finished products and the company's production prospects, “more intense in the latter case”.

“The indicator increased significantly in the group of ‘intermediate goods ’, registering the biggest increase in the series, after reaching the minimum of the series in May. In the remaining groupings, ‘consumer goods’ and ‘investment goods’, the indicator recovered in May and June”, notes the INE.

The construction and public works confidence indicator partially recovered in May and June, after registering in April the sharpest decrease in the series, having reached the minimum since November 2015, while the trade confidence indicator increased in May and June, after having decreased significantly in April, when it reached the minimum of the series.

As for the services' confidence indicator, it increased in June after having decreased between February and May, having registered in April an “abrupt drop” and reached in May a new historical minimum of the series.

The economic climate indicator, which summarises the balance of extreme responses to questions related to business surveys, recovered in May and June, “especially in the last month, after the greatest reduction in the series in April compared to the previous month and which led to a new minimum".


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