The final euro-area consumer confidence index is expected to match the flash release of -4.6 in April, dropping from -3.7 prior, which was the highest reading since 2007. The main reasons for higher consumer confidence are lower energy prices and easier credit conditions for households, which support real disposable household income. Wages and salaries increased 1.1% y/y in Q4-2014 in the euro area, about 1% higher than inflation, supporting real incomes. There are also some signs that the labour market is improving. However, this is not the case for all euro-area countries. Labour markets in Germany and Spain are among the best performing, while they remain stagnant in France and Italy.
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