Consumer expectations about inflation in the next 12 months and mortgage rates were unchanged, while consumer expectations about wages, spending growth and the economic situation fell: this is what the European Central Bank’s monthly survey shows in July.
For the third month in a row, European citizens who took part in the Frankfurt survey see inflation at 2.8% over the next 12 months. On wages, they instead see a 1.1% increase, but down from 1.4% in June. On spending, they expect growth to fall from 3.3% to 3.2%.
Spending expectations remain at their lowest levels since February 2022, when Russia invaded Ukraine.
For GDP over the next 12 months, the outlook is even more negative: -1%, compared to -0.9% in June. Unemployment expectations remain unchanged at 10.6%, at a historic low.
Additionally, consumers expect home prices to rise 2.6% in July, down from 2.7% in June.
They see mortgage rates unchanged at 4.8%. But low-income households see them at 5.4%. Finally, the share of consumers seeking credit rose: from 16.8% in April to 17.2% in July.
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