Consumers in the 17 countries that share the euro continued to become less pessimistic in October, a development that is likely to support a continued, if modest, pickup in spending.
The European Commission said Wednesday its preliminary estimate for the headline measure of consumer confidence in the currency area rose to minus 14.5 in October from minus 14.9 in September, remaining at its highest level since July 2011 for the second straight month.
The improvement in consumer confidence has been under way since December 2012, largely reflecting a slowly building conviction that the worst of the euro zone's fiscal and banking crisis had passed, and that a catastrophic breakup of the currency area was becoming less likely.
As 2013 has progressed, an increasing number of governments have eased back on austerity and while unemployment remains high, it has started to steady.
The gradual dispersal of the gloom that shrouded consumers in 2012 is a positive development for the currency area. Rising confidence was one reason consumer spending picked up slightly in the second quarter of this year, helping the economy return to growth after a contraction that lasted 18 months.
Figures released by the European Union's official statistics agency indicate that pickup in spending may have continued into the third quarter, with retail sales having risen in both July and August.
Still, the confidence measure remains below its average going back to 1990 of minus 13.3, reflecting still high unemployment and slow wage growth.
nasdaq.com
The European Commission said Wednesday its preliminary estimate for the headline measure of consumer confidence in the currency area rose to minus 14.5 in October from minus 14.9 in September, remaining at its highest level since July 2011 for the second straight month.
The improvement in consumer confidence has been under way since December 2012, largely reflecting a slowly building conviction that the worst of the euro zone's fiscal and banking crisis had passed, and that a catastrophic breakup of the currency area was becoming less likely.
As 2013 has progressed, an increasing number of governments have eased back on austerity and while unemployment remains high, it has started to steady.
The gradual dispersal of the gloom that shrouded consumers in 2012 is a positive development for the currency area. Rising confidence was one reason consumer spending picked up slightly in the second quarter of this year, helping the economy return to growth after a contraction that lasted 18 months.
Figures released by the European Union's official statistics agency indicate that pickup in spending may have continued into the third quarter, with retail sales having risen in both July and August.
Still, the confidence measure remains below its average going back to 1990 of minus 13.3, reflecting still high unemployment and slow wage growth.
nasdaq.com
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