Summary: Euro-zone households more pessimistic in November; slightly above consensus expectation; still below long-term average; major euro-zone bond yields barely changed.
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 of sorts began in May. More recent readings have generally stagnated at below-average levels.
The November survey conducted by the European Commission indicated its Consumer Confidence index decreased to -17.6. The reading was slightly more the -18.0 which had been expected but lower than October’s figure of -15.5. The average reading since the beginning of 1985 has been -11.7.
The report had little effect on major European bond markets. By the end of the day, the German 10-year bund yield remained unchanged at -0.58% while the French 10-year OAT bond yields had slipped 1bp to -0.35%.