Consumer confidence fell to minus 33.0 in July from minus 24.0 in June. The July result marked the weakest sentiment on record. Consequently, the index indicates a retention among consumers.
The worsening was determined by the worsening of opinions on the financial situation of households and on the general economic climate in the last 12 months and in the year to come. The war in Ukraine has fueled inflation, which is weighing heavily on sentiment levels. Furthermore, consumers view their current financial situation less favorably and are less likely to purchase large items in the next 12 months.
FocusEconomics Consensus Forecast speakers predict that private consumption will increase by 3.5% in 2022, down 0.2 percentage points from last month’s forecast. For 2023, speakers see private consumption increasing by 1.7%.