European household sentiment is deteriorating with income and economic growth expectations declining, according to the latest survey from the European Central Bank (ECB).
The central bank’s consumer survey for October found that economic growth expectations for the next 12 months were “marginally more negative,” while median expectations for inflation remained unchanged at 4.0% over the next 12 months and at 2.5% for the coming three years.
At the same time, consumers’ nominal income growth expectations over the next 12 months came in slightly lower at 1.1%, which was down slightly from 1.2% in September.
Expectations for spending growth over the next 12 months also edged down to 3.3%, from 3.4% in September.
Consumers’ concerns about access to credit also intensified in October, as expectations for access to credit over the next 12 months tightened to an all-time high.
Unemployment rate expectations for the next 12 months were unchanged at 11.4%, the ECB also noted.