Data published last week did nothing to alter the picture of a rapidly worsening outlook for domestic spending throughout the euro-zone. Consumer sentiment in the periphery is now only a touch above its record low and while core sentiment is rather higher, it has recently fallen sharply. A key factor behind the deterioration is growing concerns about the health of the labour market. Admittedly, the number of unemployed workers has recently been rising a bit more slowly than a few months ago. But consumers in the core have recently grown much more pessimistic about the outlook for the labour market. This could prompt them to become more cautious and cut back further on non-essential spending.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services