A key indicator of consumer confidence in the grand duchy slipped by six percentage points last month, although sentiment is slightly stronger than it was this time last year.
The Luxembourg Central Bank (BCL) measures consumer confidence using four indicators: households’ expectations of the general economic situation in Luxembourg, their perception of their financial situation over the past 12 months, their expected financial situation over the next 12 months, and their intended spending on major purchases such as furniture and electrical devices. Balances are calculated by taking the difference between the percentages of respondents who provide positive and negative responses.
In April, all four indicators saw a decline compared to March. When compared to one year ago, two of the indicators improved, one remained the same and one dropped significantly.
In April, the score for expectations of the general economic situation dropped to -23, a decline compared to March’s score of -18. However, this is still an improvement from a year ago when the score was -34.
The perceived financial situation of households during the past 12 months slightly declined from March’s score of -14 to -16 in April, but remained unchanged compared to the same period last year, April 2022.
On the other hand, the expected financial situation of households dropped from -3 in March to -6 in April, but it is still higher from April 2022’s score of -19.
Despite mixed sentiments for the perceived and expected financial situations of households, the intended spending on major purchases dropped significantly from -19 points in March to -29 in April.
Overall, the consumer confidence fell to a score of -19 in April, down from -13 in the previous month, but it is slightly better than April 2022’s score of -22.