Historic drop in consumer confidence

At -22, the consumer confidence indicator in April stands far below its long-term average over the past two decades (-5). The indicator reached an all-time high (36) in January 2000 and an all-time low (-41) in March 2013.

Opinions on the economic climate over the next twelve months never this negative

Consumers are substantially more negative about the economic situation than they were in the previous month. The component indicator Economic climate has deteriorated from -8 in March to -31 in April. Never before have consumers been as negative about the economic climate in the next twelve months as in April. The previous low was in November 2011, during the eurozone crisis. As for the economic climate over the past twelve months, consumer sentiment in April is almost as positive as in March.

Historic drop in consumers’ willingness to buy

Consumers’ willingness to buy has also plummeted. This component indicator stands at -17, down from 2 in March, the single largest decline in history. Consumer opinions about their financial situation in the next twelve months have fallen drastically. Consumers also find this a much more unfavourable time to make large purchases than in March. The deterioration of these two components of consumer’s willingness to buy is unparalleled. However, consumers’ opinions on their financial situation over the past twelve months have improved.

Majority of consumers expect unemployment to rise

The question whether or not someone has a job plays an important role in their willingness to buy. Consumers’ unemployment expectations have deteriorated significantly in April. This deterioration was also the largest ever recorded. Approximately 85 percent of the respondents expect unemployment to rise in the twelve months to come, whereas 8 percent anticipate a drop. The balance of positive and negative answers stands at -78. The all-time low was -88 in March 1993.