Euro zone consumer confidence rises to -19.0 in May
Euro zone consumer confidence rose to -19.0 in May from -20.3 in April, according to the European Commission's flash reading. Analysts read the modest improvement as a sign of cautious balance among households against the energy shock linked to the Iran war.
The European Commission's preliminary reading showed euro zone consumer confidence rose to -19.0 in May, an improvement of 1.3 points from -20.3 in April. Survey results suggest households see a modest recovery in perceptions of their financial situation over the past twelve months and a small lift in major purchase intentions ahead.
Economists read the data as a signal that the energy shock linked to the Iran war is not, for now, dragging confidence into sharper deterioration. Annual inflation drifting toward 3 percent continues to strain real purchasing power, but wage settlements across member states and a resilient labour market are offsetting some of the pressure.
European Central Bank policymakers say the reading carries weight in softening the rate-policy debate. Eyes now turn to the German GfK consumer confidence release due in June and country-level retail-sales figures; markets continue to price in the possibility of two additional cuts before the end of the year.
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