Consumer confidence in the 17 countries of the Eurozone rose marginally in January, data showed on Monday, with concerns about the slowing economy balanced against a stronger stock market and some optimism over the debt crisis. Consumer morale crept up to -21.0 from -21.3 in December, the European Union's executive Commission said in a flash estimate.
In the wider 27-nation European Union, consumer sentiment improved to -21.0 from -22.1 in December. Strong private demand is seen as crucial to helping the Eurozone pull out of a slowdown exacerbated by the sovereign debt crisis. High unemployment in Ireland and Spain following the housing crashes there, austerity programmes across southern Europe and growth grinding to a halt or turning negative across the single currency region have been weighing on household spending.
The Eurozone economy grew just 0.2 percent in the third quarter and is widely expected to have contracted in the final three months of 2011. On the positive side, stock markets are up in the first few weeks of 2012. Last week, German analyst and investor sentiment posted a record rise, hinting at a turning point for Europe's largest economy after a small contraction late last year, with greater optimism over the policy response to the debt crisis.
Comments
Comments are closed.