Eurozone Consumer Confidence falls in January

The Eurozone Consumer Confidence has fallen to -8.5 in January flash estimate versus expected decline to -9.0
According to the flash estimate of the European Commission’s Eurozone Consumer Confidence survey, the headline index fell to -8.5 in January versus forecasts for a drop to -9.0 from -8.4 the month prior. December’s reading was revised slightly lower from -8.3.

As for the market’s reaction, the euro has not reacted to the latest data, which was broadly in line with expectations.

The Consumer Confidence Index is expected to improve in the coming months as the prevalence of the Omicron variant fades. At present, EUR/USD continues to trade in the 1.1340s, with its intra-day gains capped by the presence of the 21-day moving average just under 1.1350.

Ipsos’ Global Consumer Confidence Index in the first month of 2022 reads at 48.6, exactly as it did in January 2020 before the COVID-19 pandemic. The global index is virtually unchanged from last month (down just two-tenths of one point) despite the rapid spread of the Omicron variant across the world.

The Global Consumer Confidence Index is the average of 24 countries’ National Indices. It is based on a monthly survey of more than 17,500 adults under the age of 75 conducted on Ipsos’ Global Advisor online platform. This survey was fielded between December 24, 2021 and January 7, 2022.

Among the 24 countries surveyed, only six show any significant month-over-month change in their National Index score (at least +/- 1.5 points) and none of these changes exceeds two points.

Globally, the Jobs, Investment, and Expectations sub-indices trend similarly. All three are showing little change from last month, at levels close to their respective January 2020 readings.

The Global Consumer Confidence Index has seen little movement over the past seven months, holding steady at around 48.5. While the global average score has barely changed from last month, four countries show significant gains in their National Index scores (Hungary +1.8, Russia +1.6, South Africa +1.6, and Brazil +1.6), and two countries show significant drops (China -1.7 and Italy -1.5).