The onset of the war in the Middle East triggered a sharp deterioration in consumer confidence across the euro area, comparable in magnitude to that observed after Russia’s invasion of Ukraine. This box examines the extent to which the decline in confidence is associated with actual consumption behaviour using microdata from the ECB Consumer Expectations Survey. The analysis reveals that nominal consumption growth softened materially in April 2026, driven mainly by reduced discretionary spending, particularly among higher-income households. Looking ahead, the consumption outlook could face additional downside risks if households were to expect lasting losses in real income.
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