Summary: Euro-zone consumer sentiment improves slightly again in June, index slightly below expected; consumer confidence index still well below long-term average; euro-zone bond yields move inconsistently.
EU consumer confidence plunged during the GFC and again in 2011/12 during the European debt crisis. After bouncing back through 2013 and 2014, it fell back significantly in late 2018 but only to a level which corresponds to significant optimism among households. Following the plunge which took place in April 2020, a recovery began a month later, with household confidence returning to above-average levels from March 2021. However, readings subsequent to early 2022 were extremely low by historical standards until recently.
Consumer confidence improved for a fifth consecutive month in June, according to the latest survey conducted by the European Commission. Its Consumer Confidence Indicator recorded a reading of -14.0, slightly below the generally expected figure of -13.8 but up from May’s reading of -14.3. This latest reading is still well below the long-term average of -10.5 and just above the lower bound of the range in which “normal” readings usually occur.
Sovereign bond yields in major euro-zone bond markets moved inconsistently on the day. By the close of business, the German 10-year yield had added 1bp to 2.42% while the French 10-year yield finished 2bps lower at 3.15%.