September 9, 2014

Consumer sentiment fell from the 41.5 points recorded in July to 41.2 points in August, which contrasted market expectations of an increase to 42.3 points. July’s print had represented the highest reading since November 2013. The consumer confidence index measures consumers’ expectations for the next six months on a scale of 0–100, where 100 points indicates that all respondents see their living standards improving.



August’s print was the result of a sizeable drop in employment prospects as well as a decline in income growth. Household’s willingness to buy durable goods recorded a marginal decline. Conversely, the overall livelihood category jumped to a nine-month high in August.

FocusEconomics Consensus Forecast panelists expect private consumption to increase 0.6% in 2014, which is up 0.1 percentage points from last month’s forecast. In 2015, the panel sees private consumption growing 0.4%.