Expatica news

Bank upbeat on consumer spending

2 December 2003

MADRID – Consumer spending indicators showed stable growth in the economy, a Bank of Spain report said Tuesday.

The study said after reaching a peak in September, the index of consumer economic confidence fell slightly in October.

But it has stayed at the same average level throughout the third quarter of the year, showing steady growth overrall.

The fall was partly the result off a downturn in the housing market but this was partly compensated for by higher spending on consumer durables.

The retail sales index rose by 3.6 percent in September, compared with the same period last year.

The report by economists from the Bank of Spain also said confidence in the index of retailers showed a significant improvement in October.

They anticipated a rise in business confidence in the next few months.

Another favourable indicator for the economy was the rise in private car sales. In October, there was a 9.4 per cent increase – beating the previous rise of 6.1 percent rise in the third quarter.

However, confidence in the construction industry weakened during the same period. In October, the consumer confidence index reached one of its lowest points this year.

Other negative factors included a decrease in the sales of cement by 0.3 percent in October and the fall in the number of people paying social security.

[Copyright EFE with Expatica]

Subject: Spanish news