Consumer confidence has been negative in the Eurozone for a long time. It turned negative back in June 2018 and hasn’t turned positive since then. It declined to -7.8 points and has been remaining there during the last 8-9 months, so it stabilized at that level.
But, as coronavirus spread to Europe, countries have been shutting down and every economic indicator has dived really hard. The consumer sentiment was expected to turn even more negative this month, with expectations ranging from around -8, to -24, which would be the lowest level ever recorded.
As we saw yesterday, the sentiment did decline further indeed, but by less than what the median consensus was.
- Eurozone March advance consumer confidence at -11.6 points
- Expectations for March ranged from -8 to -24 points, averaging at -14.0
- February consumer confidence stood at -6.6 points
The decline wasn’t too big, although at a 5-year low; however, the panic buying this month ahead of the shutdown should have helped. I expect the consumer sentiment to get worse next month if the pandemic continues and workers miss their next paycheck. Surely, governments and central banks will help, but the buying force will soften further.