ECB’s latest Consumer Expectations Survey for August paints a picture of an economy where consumers anticipate higher inflation rates but remain pessimistic about economic growth.
Specifically, the survey indicates that median inflation expectations for the next 12 months have risen from 3.4% to 3.5%. A similar uptrend was observed for the three-year horizon, with expectations inching up from 2.4% to 2.5%.
Household income expectations for the next year showed a slight increase, moving from 1.1% to 1.2%. However, a contrasting sentiment emerged for spending , with expectations slightly decreasing from 3.4% to 3.3%.
In terms of economic growth, the mood appears somewhat bearish. The survey revealed that median expectations for growth over the coming 12 months have declined, shifting from -0.7% to -0.8%.
