Consumer confidence takes a hit

(CS) After reaching its best level in over two years in May, consumer confidence in Luxembourg decreased in June in all categories assessed by the Central Bank, with only expectations of the labour market stable.

Over the coming twelve months, respondents to the consumer confidence survey expect the economic situation of Luxembourg to deteriorate. At the same time they said that unemployment would get worse and the state of their own household finances would be weakened.

Only in expected savings over the next year was the response of respondents stable compared to May.

The results, incorporating seasonal variations, sees a departure from a more positive trend of the first five months of the year.

May had seen overall consumer confidence reach its higher level in over two years. Households had been at their most optimistic since June 2013 about their financial situation last month. Expectations about the development of unemployment had also been more positive than before.

Still, despite the June dip, rates were still high compared to previous years and even the start of 2015.