Households’ outlook on the Luxembourg economy has “receded”, although they were mildly more positive about their own finances.
The Luxembourg Central Bank (BCL) said its monthly consumer confidence indicator dropped from +2 in May to -1 in June.
However, consumers sent mixed signals: households thought they had fallen behind and expected to limit big ticket spending, although they reckoned the country’s economy and their own personal finances would improve in the coming year.
As the central bank put it, the indicator’s 4 underlying factors “evolved in contrasting ways”:
The gauge of households’ “perception of their financial situation over the past 12 months” fell from 6 in May 2019 to 0 in June 2019. (By comparison, it was 2 in June 2018 and 3 in June 2017.)
The measure for “intended spending on major purchases (furniture, electrical devices…)” was, the central bank said, “strongly revised downwards” from -8 in May to -16 in June. (It was -20 in June 2018 and -2 in June 2017.)
The score for “consumers’ expectations of the general economic situation in Luxembourg” doubled from 3 in May to 6 in June. (It was 3 in June 2018 and 6 in June 2017.)
The metric for households’ “expected financial situation over the next 12 months” rose slightly from 5 in May to 6 in June. (It was 4 in June 2018 and 3 in June 2017).