Wednesday, May 20, 2009

Spanish consumer confidence rebounds

The number of unemployed in Spain registered the smallest increase in nine months this April and the Spanish consumer confidence rose again this month which indicates Spanish economy is stabilizing at a momentous rate, according to the reports.

According to the labor ministry reports, April was the third straight month in which the rate of increase eased, after a rise of nearly 200,000 in January was followed by somewhat smaller figures in February and March. In terms of unemployment rate, the latest quarterly estimate from the national statistics agency (INE) was 13.9 percent for the fourth quarter of 2008 and unemployment fell by 0.62% in March 2009.

Spanish consumer confidence increased in March to 53.7 points, up from 48.6 points in February, The Confidence Index which is provided by Spain's Official Credit Institute (ICO ) was at 73.1 in March last year, hit a record low of 46.3 in July as oil prices soared and European Central Bank interest rates hit 4.25 percent.

According to The Bloomberg reports, overseas property hunters apprehensive of any market fluctuations might be comforted by the fact that rather than being the sudden drop and drama of a property slump in Spain, though, it is more a case of a gradual stabilizing of the market.

Increasing Consumer confidence is a good sign that investors buying Spanish property have been happy to snap up what's on offer and the market appears to be expanding. Also, a wave of first-time buyers, increasing numbers of economic immigrants and the changing view of Spain from the land of a quick buck to a long-term investment are all reasons most developers and financial experts are confident the market will be robust enough to survive a property price slow-down.

Meanwhile, Beatriz Corredor, Spain's Minister of Housing stated that the collapse in Spain’s housing starts has described as good news "Residential construction is returning to the rate that responds to the Spanish population," said Corredor, talking on Spanish radio. "In this sense, the readjustment in the sector is good news," he commented.