January 2018 Eurozone economic sentiment and consumer confidence final 30 January 2018

  • Prior 116.0
  • Business climate 1.54 vs 1.69 exp. Prior 1.66
  • Industrial sentiment 8.8 vs 9.0 exp. Prior 9.1
  • Services sentiment 16.7 vs 18.6 exp. Prior 18.4
  • Consumer confidence final 1.3 vs 1.3 exp. Prior 1.3
  • Consumer inflation expectations 19.6 vs 13.6 prior. Highest since Feb 2013
  • Selling price expectations 12.4 vs 13.4 prior. Revised to 13.0

Some of the late year sentiment has faded but perhaps the bigger news is that big jump in the inflation gauge. The ECB is all about inflation expectations and that number is looking good. In the same way that falling inflation sentiment can see consumers holding back spending on the hopes of cheaper prices (and thus it can have a self-fulfilling effect on falling inflation), rising price expectations can bring forward spending as folks buy to avoid future price rises.

Eurozone consumer inflation expectations

Eurozone consumer inflation expectations

Ryan Littlestone

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