Summary
In May, the economic sentiment indicator diminished in the Euro Area (EA) and in the European Union (EU27). In the same period, the consumer confidence indicator stabilized in the EA and recorded a tenuous increase in the EU27. The raw materials and the oil prices continued to register strong year-on-year growth rates, although decelerating when compared to April.
In Portugal, the economic climate indicator maintained in May the downward movement started in July 2010. The economic activity indicator, available until April, slightly diminished, resuming the tenuous descending path observed since September. The private consumption indicator registered again a year-on-year reduction, although stabilizing when compared to March, reflecting the negative contribution of the durable consumption component. The Gross Fixed Capital Formation (GFCF) indicator presented a more intense reduction in April, reflecting the negative evolution of all components. Concerning the international trade of goods, in April imports and mainly exports recorded again significant year-on-year growth rates in nominal terms, of 8.8% and 16.2% (9.2% and 17.6% in March), respectively.
In May, the year-on-year change rate of the Consumer Price Index (CPI) was 3.8% (4.1% in April). Excluding energy and unprocessed food products, that year-on-year change rate was 2.5% (2.6% in the previous month). The prices of the goods and of the services components presented year-on-year growth rates of 4.6% and 2.8% in May (4.8% and 2.9% in April), respectively. The differential between the change rate of the Portuguese Harmonized Index of Consumer Prices (HICP) and of the EA HICP diminished 0.2 p.p. in May, to 1.0 p.p..