Euro area consumers were less pessimistic in April and the consumer sentiment index rose faster than expected to its highest level in over a year, preliminary data from the European Commission showed Thursday. The flash consumer confidence index rose to -17.5 from -19.1 in March. Economists had forecast a score of -18.5. The latest reading was the strongest since February last year, when it was -9.5. The consumer confidence index for the EU gained 1.7 percentage points to reach -18.9 in April, which was the best reading in 14 months.
However, both readings remained well below their long-term average, the commission said.
ING economist Bert Colijn said the point where Eurozone wage growth outpaces inflation again is near, but for now the purchasing power losses continue.
"On the bright side, the labor market has continued to see record-low unemployment levels, which provides a solid base for continued consumption," the economist said. "Together, this creates an environment of modest consumption growth over the course of 2023."
The survey data was collected from April 1 to 19. Final results for the consumer confidence index is scheduled to be released along with the monthly economic sentiment survey data on April 27.
