Summary: Euro-zone households less optimistic in March; Consumer Confidence Indicator down 9.9 points to -18.7; below long-term average, under lower bound of normal readings; euro-zone sovereign bond yields lower.
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 in March 2021. However, more recent readings have fallen substantially.
Consumer confidence deteriorated further in March according to the latest survey conducted by the European Commission. Its Consumer Confidence Indicator recorded a reading of -18.7, lower than the -12.9 which had been generally expected and well down on February’s figure of -8.8. The current reading is now well below the long-term average of -11.6 and it is also outside the range in which “normal” readings usually occur.
Sovereign bond yields fell in major euro-zone bond markets on the day. By the end of it, German and French 10-year bond yields had both shed 5bps to 0.45% and 0.92% respectively.