Eurozone consumer confidence improves but still below pre-pandemic levels, Eurostat figures show

Other Eurostat figures showed Ireland’s economy powered ahead during the pandemic years as multinational activity grew, placing the country in a better position to navigate the current volatile economic environment. Picture: Denis Minihane.

Confidence among consumers in the eurozone increased for the fourth month in a row in February, but remains below its long-term average and pre-pandemic levels, according to a survey by Eurostat.

The Flash Consumer Confidence Indicator showed consumer sentiment improved further by 1.7 percentage points in the eurozone this month.

Eurozone inflation fell in January to 8.5% from 9.2% in December, but ongoing headwinds, including slow production in the construction sector and the ongoing war in Ukraine, could be dampening consumer sentiment.

Separate Eurostat figures released this week showed production in the eurozone's construction sector was down by 2.5% in December 2022, compared to a 0.1% fall in November.

Meanwhile, the latest BNP Paribas Real Estate Ireland Construction Purchasing Managers’ Index (PMI) also showed housebuilding activity declined for the fourth month in a row in January as construction firms struggled to secure new orders and builders continued to battle sharp input-cost inflation as prices increased across a broad range of products.

Ireland's economy growing

Elsewhere, other Eurostat figures showed Ireland’s economy powered ahead during the pandemic years as multinational activity grew, placing the country in a better position to navigate the current volatile economic environment.

The statistics office found Ireland recorded the highest increase in Gross Domestic Product, or GDP, in the EU compared with pre-pandemic levels in 2019.

GDP measures economic activity by multinational companies including Microsoft, Google, and Intel, which operate substantial European facilities across the island of Ireland.

During this period, growth was particularly high in the south where many tech, pharma, and manufacturing multinationals including Apple and Pfizer are located.

Last year, IDA Ireland said the country's multinational sector continued to grow jobs as well amid new economic headwinds, but momentum is expected to slow in the second half of 2023 following the tech slowdown which has led to more than 100,000 layoffs across the globe.