Consumer confidence rose to minus 31.0 in August from minus 33.0 in July. However, the index remained firmly anchored in highly pessimistic territory.
The main improvement was driven by less pessimistic views of the financial situation of households in the past and the next 12 months, as well as less pessimistic attitudes towards the economic situation in the same time frames. However, consumers were less likely to make large purchases right now, and more likely to save right now and over the next 12 months.
Analysts at EIU added:
The cutting off of Russian gas supplies to Germany via the Nord Stream 1 pipeline has implications for Austria, as some of that gas is re-exported to Austria. Energy rationing in Austria is not our primary expectation, but it is a high-probability, high-impact scenario. These fears will raise gas prices (and inflation) and undermine the already weak confidence between households and businesses. Private consumption will stop […]. “
Members of the FocusEconomics Consensus forecast committee expect private consumption to grow 3.1% in 2022, unchanged from last month’s forecast. For 2023, committee members see private consumption rising by 1.3%.