Consumer Confidence Takes a Hit

In a concerning turn of events, the consumer confidence indicator for both the euro area and the European Union experienced a downturn in December 2024. The figures fell by 0.7 and 1 percentage points respectively, landing at negative 14.5 and negative 13.4. This decline aligns with the preliminary readings, signaling a consistent trend of growing consumer pessimism.

Economic Sentiment Indicator Declines

The Economic Sentiment Indicator (ESI) wasn't spared either, with a notable decrease of 1.9 percentage points in the Eurozone, bringing it down to 93.7. Similarly, the entire EU saw a 1.7 percentage point drop, resulting in an ESI of 94.5. This downward movement underscores a broader sense of economic uncertainty across the region.

Employment Expectations Indicator Falls

Adding to the grim economic outlook, the Employment Expectations Indicator (EEI) also took a hit. In the euro area, it dropped by 1.4 percentage points to 97.3, while the EU as a whole experienced a 1 percentage point decline to 98.4. These figures reflect growing concerns among consumers about the general economic situation and their willingness to engage in major purchases.

"For the second month in a row, consumer confidence has declined, with consumers showing increased pessimism about the economic situation in their respective countries and their intentions to make major purchases," the report highlighted.