Luxembourg residents are afraid to buy
Alexander Mils, Unsplash
Bank of Luxembourg (BCL) on 2 December 2024 reported a significant decline in the consumer confidence index in November. All key components of the indicator showed negative dynamics.
Economic evaluation
Luxembourgers have become more pessimistic about the country's economic prospects.
Financial situation
The outlook for personal finances over the next 12 months has also deteriorated, albeit slightly. At the same time, the perception of the financial situation has noticeably worsened over the past year.
Consumer activity
Intentions to make large purchases, such as furniture or electronics, declined minimally.
The aggregate consumer confidence index, calculated as the arithmetic mean of the four components, fell significantly.
Among the components:
- Expectations about the general economic situation.
- Perceptions of finances over the past 12 months.
- Projections for the next 12 months.
- Plans for major purchases.
The index is formed from the difference between the percentage of positive and negative answers of respondents for all components. The data are adjusted for seasonal factors.
The decline in confidence is due to a number of factors:
- Negative economic expectations due to global instability.
- Inflationary pressures on household budgets.
- Uncertainty about future earnings.
These data underline the need for additional measures to stabilise consumer sentiment and support the population in the face of economic uncertainty.
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