PARIS (MNI) – Contrary to expectations, Eurozone consumer morale
recovered in May from the nine-month low hit in April, the European
Commission said Friday, citing preliminary estimates.

After a 1.6-point slide since February, the indicator rebounded 1.9
points to a five-month high of -9.7. Analysts polled by Market News
International survey had expected a further erosion. The median survey
forecast was -12.3.

In April, consumers had reported a further pick-up in recent
inflation and were only marginally less worried about future price
trends than in March. As a result, they expected their financial
situation to deteriorate and thus to be able to save less and spend less
on big-ticket items. While unemployment concerns eased further,
expectations for the overall economy dropped sharply to a 10-month low.

The final confidence figure for May, along with the other
components of the Commission’s comprehensive sentiment survey, is
scheduled for release next Friday.

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