Consumer confidence in the Euro Area deteriorates sharply

Consumer confidence in the Euro Area plummeted in March reflecting Europeans' worries about the war in Ukraine. According to the flash estimate by the European Commission's Directorate-General for Economic and Financial Affairs, the indicator dropped to -18.7 pp compared to -8.8 pp in February. This is the lowest level since May 2020.

The indicator dropped to -18.7 pp compared to -8.8 pp in February

Consumer confidence in the common currency union has been deteriorating since September 2021 but exhibited signs of stabilizing around -9 pp in the last three months prior to March 2022.

By comparison, the consumer confidence in the European Union as a whole is at an even lower level (-19.6 pp) compared to 10.2 pp in February.

In its flash release, the Commission publishes only the main indicator, with the final reading together with breakdown sub-indices are expected next week, towards the end of the month.

The European Commission's Consumer Confidence Indicator is the arithmetic average of the balances of answers to a selection of questions on the financial situation of a household, the general economic situation, and savings, over the next 12 months.

Explore more visuals here