Luxembourg’s consumer confidence index increased in March
to a positive value. The difference is relevant compared to March 2015 when the same index had a negative value. The value of this index shows that the country’s economy
, and, more importantly, the people’s spending power, has evolved in a good direction.
Luxembourg’s consumer confidence index in 2016
The consumer confidence index increased not only compared to the same time last year, but also compared to February 2016. In March, the index was 8.8 while in February it was only 5.6. The surveys performed from the beginning of the year show that consumer confidence is rising at a satisfactory pace (from 5.4 in January to 8.8 in March).
The indicator reflects a positive evolution not only for the overall economy but most importantly for households and individuals who are more confident in their future financial situations. The individual’s capacity to save money are also positive and have improved slightly over the few months of 2016.
Another positive evolution in the general perception of the Grand Duchy’s economic future is that concerns about unemployment have decreased over the last few months.
The consumer confidence index: measuring the individual’s optimism
The consumer confidence index is a tool used by economic analysts to record the individual’s general perception about his own financial situation but also about the country’s economic evolution. This index is generally positive when unemployment is low and the GDP growth is substantial.
In Luxembourg, the consumer confidence index is also an important indicator of how much an individual is willing to spend for various items. Foreign investors
can use these predictions to make their own assumptions about their sales and financial prospects. The consumer confidence index is issued on a monthly basis by the European Commission.