SYNTHESIS INE@COVID-19, 22-jun-2020

June . 22 . 2020 page 6/19 Communication Unit | tel: +351 21 842 61 00 | sci@ine.pt www.ine.pt SYNTH SIS IN @ COVID-19 Partial recovery of the economic activity in May when compared to the previous month In May, the consumer confidence and economic sentiment indicators in the Euro Area (EA) partially recovered from the decreases observed in April, although still recording historical minimum values. In the same month, the prices of raw materials and oil presented monthly growth rates of 2.2% and 59.3%, respectively (-4.0% and -56.6% in April). In Portugal, the information already available for May reveals a less intense contraction in the economic activity, when compared to the previous month: • The economic climate indicator presented a slight increase, after recording the strongest reduction since December 2012; • The Consumer confidence indicator registered the largest increase in the series, partially recovering from the abrupt decrease in the previous month when it reached the lowest value since May 2013; • The Manufacturing confidence indicator decreased; this indicator has been declining since April; • The Construction and Public Works confidence indicator partially recovered from the decrease in April. This outcome mirrors the increase in the balance of the perspectives on employment, while the opinions on order books worsened again, reaching a new level minimum since July 2016; • The Trade confidence indicator increased moderately, after having decreased significantly in April attaining a new series minimum. This outcome mostly reflected the balance of the perspectives on business activity in the next three months. The opinions on the volume of stocks also presented a positive contribution, but to a lesser extent. Conversely, opinions on sales volume extended in May the strong fall of the previous month, reaching a new minimum; • The Services’ confidence indicator also maintained its abrupt fall registered in April, reaching a new historical minimum in the series started in April 2001, with the significant negative contributions of the opinions on the evolution of the business situation and of the order books, which reached new minimums. Conversely, the perspectives on the evolution of the order books partially recovered from the largest reduction in the monthly series occurred in the previous month. The economic activity indicator registered an abrupt reduction in April and reached the lowest value of the series. By components on the expenditure side: • The private consumption indicator presented the minimum year-on-year rate of change since the beginning of the series, mainly due to the abrupt decrease in durable consumption, in particular, the expenditures with the acquisition of motor vehicles; • The investment indicator also registered the most intense reduction since December 2012. Sales on passangers cars (year-on-year change) -74.8% -100.0 -80.0 -60.0 -40.0 -20.0 0.0 20.0 40.0 60.0 80.0 100.0 y-o-y rate/% May-05 May-19 May-07 May-09 May-11 May-13 May-15 May-17 In May, the sales of passenger cars decreased by 74.8% in year-on-year terms, after falling by 87.0% in April.