European Union Consumer Confidence Index

The Consumer Confidence Indicator displays the level of consumer confidence in the euro area's economic activity. The index is calculated monthly based on a survey of about 24 thousand households of the eurozone. The number of participating households per country is selected in accordance with the contribution of a particular country to the economy of the euro area.

Consumers are asked to provide a one year forward outlook for economic conditions in the country and in their households. The index is calculated as the arithmetic mean of summary balances of survey answers to the following questions:

• How do you expect the financial position of your household to change over the next 12 months? (Get better, Get a little better, Stay the same, Get a little worse, Get a lot worse, Don't know).
• How do you expect the general economic situation in this country to develop over the next 12 months? (Get better, Get a little better, Stay the same, Get a little worse, Get a lot worse, Don't know).
• How do you expect the number of people unemployed in this country will change over the next 12 months? (Increase sharply, Increase slightly, Remain the same, Fall slightly, Fall sharply, Don't know).
• Over the next 12 months, how likely will you be to save any money? (Very likely, Fairly likely, Not likely, Not at all likely, Don't know).

Thus, the consumer confidence index reflects the expectations of households about how the economy in their will develop in the coming year. The survey results are harmonized and compiled to a single index for the eurozone.

This indicator reflects the consumer mood, which is based on the current economic situation. Analysts see it as a leading indicator of consumer activity. Index growth that consumers are in a favorable mood, feel confident, and therefore tend to spend money, which has a favorable effect on the economy of the eurozone.

The index growth can be seen as positive for the euro quotes.