Consumer confidence rises two points in July and marks its highest levels since October 2021

Consumer confidence rose two points in July compared to the previous month, reaching 94.4 points, its highest level since October 2021, when it reached 97.3 points, as reported on Tuesday by the Center for Sociological Research ( CIS).

With the data for July, consumer confidence has chained four consecutive months of rises, although that of the seventh month of the year has been the most moderate of all.

The increase in confidence in July is mainly due to the better assessment that citizens make of the current situation, since expectations for the future hardly changed compared to the data for June.

Specifically, the assessment of the current situation grew 3.9 points in July compared to the previous month, reaching 87.1 points, while the expectations indicator improved one tenth, up to 101.7 points.

The Consumer Confidence Index (ICC) collects a monthly evaluation of the recent evolution and expectations of Spanish consumers related to the family economy and employment, with the aim of anticipating their consumption decisions. The indicator collects values ​​between 0 and 200, considering that above 100 the perception is positive and below, negative.

The increase in the assessment of the current situation is due, according to the CIS, to the positive evolution of its three components. Specifically, the assessment of the current economic situation increases 5.9 points compared to the month of June, while the assessment of the situation of households grows 4.2 points and the assessment of the labor market improves 1.6 points

As regards the expectations indicator, only the assessment of the evolution of the economy in the immediate future decreased in July, with a drop of 2.7 points compared to the previous month. On the other hand, expectations regarding the household economy increased half a point and those related to the labor market improved 2.4 points.

INFLATION FEARS SOAR

The CIS observes in July an increase of 13.9 points in fears in relation to inflation, while expectations regarding a future increase in interest rates fell, on the other hand, 0.8 points in relation to the previous month.

On the other hand, savings expectations rise 3.3 points compared to the month of June and consumption expectations increase slightly, with an advance of 0.7 points.

Since July 2022, consumer confidence has increased by 38.9 points, after raising the perception of expectations by 43.8 points and improving favorable opinions on the current situation by 34 points.

In percentage terms, consumer confidence has increased by 70.2% in the last year, with advances of 64.1% in assessing the current situation and 75.7% in expectations.