SYNTHESIS INE@COVID-19, 6 Nov-2020

November . 06 . 2020 SYNTH SIS IN @ COVID-19 www.ine.pt page 7/15 Communication Unit | tel: +351 21 842 61 10 | sci@ine.pt Consumer confidence and economic climate indicators increase In October, the Consumer confidence indicator increased, resuming the recovery profile started in July, but still standing significantly below pre-pandemic levels The economic climate indicator continued to increase, more moderately in the last two months. In October, confidence indicators increased in Construction and Public Works , in Trade and Services , and stabilized in Industry . In October, the confidence indicators showed the following developments: • The increase in the Consumer Confidence indicator in October resulted from the positive contribution of all components: perspectives concerning the future development of the country’s economic situation, the financial situation of the household, important purchases, and opinions on past developments in the household’s financial situation; • The Manufacturing Industry confidence indicator stabilized in October, interrupting the recovery observed between June and September. The evolution of the indicator reflected the combined effect of the negative contribution of the balance of the firm’s production perspectives and the opinions on current stock of finished products and the positive contribution of the opinions on the global demand. The indicator decreased in the group of Intermediate Goods and increased in the groups of Consumer Goods and Investment Goods , more intensely in the latter case; • The Construction and Public Works confidence indicator recovered between July and October, after recording in June the minimum since January 2017. The recovery of the indicator in the last four months resulted from the positive contribution of both components, the balance of opinions on order books, and perspectives on employment. The improvement in the indicator was registered in the three divisions, Construction of Buildings , Civil Engineering and Specialized Construction Activities ; • The Trade confidence indicator increased between July and October, partially recovering from the strong deterioration observed between April and June. This evolution reflected the expressive positive contributions of the opinions on the volume of sales and, to a lesser extent, the opinions on the volume of stocks, with the perspectives on business activity over the next three months contributing negatively. The confidence indicator increased, between July and October, in the two subsectors Wholesale Trade and Retail Trade . • The Services’ confidence indicator increased between July and October after the significant deterioration observed in the previous three months. The behaviour of the indicator in the last month resulted from the positive contributions of the opinions on the evolution of the business situation and the opinions on the evolution of the order books, with the perspectives on the evolution of the order books slightly deteriorating. In October, the confidence indicator increased in all sections, except for Real estate activities , which showed a slight decrease. 0.0% -5.0% -4.0% -3.0% -2.0% -1.0% 0.0% 1.0% 2.0% 3.0% Oct-20 Aug-20 Sep-20 Jun-20 Jul-20 Apr-20 2 May- 0 Fe 20 b- Mar-20 Dec-19 jan-20 1 Nov- 9 Oct 19 - Economic Climate Indicator