Link Securities | According to preliminary estimates for December released by the European Commission (EC), the Eurozone consumer confidence index fell to -14.6 points from -14.2 points in the previous month, reaching its lowest level in three months. Analysts had expected a higher reading of -14.0 points.Germany’s consumer confidence index, compiled by the consulting firm GfK, fell in its preliminary January reading to -26.9 points from -23.4 points in December.
Analysts had expected a higher reading of -23.0 points. The preliminary January reading is the lowest this leading consumer indicator has reached since April 2024.
The fall in the index reflected greater caution among households, with a decline in willingness to buy (-7.5points versus -6.0 points in December) after two months of increases. In addition, the propensity to save shot up to its highest level since June 2008 (18.7 points versus 13.7 points in December), as concerns about a possible rebound in inflation and political uncertainty surrounding pension reforms weighed on consumer confidence. Furthermore, income expectations fell for the third consecutive month (-6.9 points versus -0.1 points in December), underscoring the continued pressure on household finances. In contrast, economic expectations turned positive (1.2 points versus -1.1 points in December), suggesting cautious optimism about the overall outlook.
