Despite remaining in negative territory, the seasonally-adjusted indicator measuring the sentiments of Luxembourg households regarding their finances and consumption witnessed a three-point improvement in May.

Consumer confidence in Luxembourg is measured by the Central Bank of Luxembourg (BCL) through four indicators: households’ expectations of the general economic situation in the country, their perception of their financial situation in the past 12 months, their anticipated financial situation in the next 12 months, and their planned expenditure on significant purchases like furniture and electrical devices. Balances are determined by calculating the disparity between the percentages of respondents who provide positive and negative responses.

In May, all four indicators showed improvements compared to both April and the same period one year ago. Among these indicators, the expected financial situation of households demonstrated the most significant improvement from one year ago.

In May, the score for expectations of the general economic situation showed a marginal improvement, shifting from -23 in April to -22. This marked a significant improvement from a year ago when the score was -32.

The perceived financial situation of households in the past 12 months also improved, moving from -16 in April to -13 in May.

Likewise, the expected financial situation of households experienced a positive change, advancing from -6 in April to -5 in May. This demonstrates a strong improvement compared to May 2022’s score of -16.

The improved sentiments regarding the perceived and expected financial situations of households also translated into their intended spending on major purchases, which improved from -29 points in April to -22 in May.

Overall, consumer confidence rose to a score of -16 in May, up from -19 in the previous month. Although still lower, this represents an improvement compared to May 2022’s score of -21.