Federación de cajas de Ahorros Vasco-Navarras

It is a quartely consumer survey that using the Consumer Confidence Index reflects the Basque citizens confidence through the general economic situation and its future perspectives
The Consumer Index is quartely calculated by the Basque-Navarre Savings Banks Federation since 1983 through telephone enquiry with a similar methodology than the Spanish and European index.

In 2011, the proportion of consumers in debt (29.7%) fell below the 35% threshold for the first time in several years and correspondingly a third of Basque homes currently held some type of loan. One in four Basque consumers (25.2%) held mortgage loans, a percentage which was just over 5 percentage points lower than the average for the last three years, while the proportion of holders of other types of loans (7.4%) remained almost the same in relation to the two previous years.

There was no change in the Basque consumer confidence index (74) in the fourth quarter of 2011 which consolidated its position a long way from the more positive assessments in previous quarters. While the index value was similar to the one between Q3 2008 and Q3 2009, it was based on more level results so that the two sets of indexes were closer to each other and consumers were not optimistic about any particular facet.

There has been little change in Basque consumer perceptions and concerns about pensions in recent years: three out of four consumers (72.7%) consider that the pension they will receive will be insufficient. Consequently, almost seven out of ten Basque consumers (69.1%) consider it necessary to have some form of alternative retirement or pension plan.

In terms of the amount of contributions paid, three out of four consumers (75.3%) who have made some sort of contribution have paid less than 600 euros - in the lower range of values. Estimations about the average annual contribution to retirement or pension plans sets this variable at around 725 euros which was -2.5% down on the previous year.

In the third quarter of 2011, the Basque consumer confidence index fell (-7) for the second consecutive quarter to reach a value of 74 points, leaving behind the fluctuations of the seven previous quarters (80-90) to settle at similar levels to those of the second half-year of 2008 and most of 2009. In this context, household consumption was expected to remain sluggish in the coming months, and with no recovery in the figures for major purchases, which could close the year with significantly negative year-on-year rates.

47.7% of Basque consumers (-9 pp) managed to save last year. There was a drop in the number of consumers who had been able to save in almost every income bracket but particularly among the higher income earners (14.7%, -9.4 pp). This was the lowest result in recent years and confirmed the downward trend for saving in the ACBC.

After a considerable drop (-10) in the second quarter of 2011, Basque consumer confidence fell to 81 points which was within the 80-90 range of index values of the last three and a half years and some ten points lower than in the seven years prior to the crisis.

Although there was a consolidated improvement in Basque consumer confidence (91, +2) to reach levels which were a long way from the clearly pessimistic values of two years ago, consumers were concerned about certain elements such as the future of the general economy and unemployment, and the impact of the crisis on home economics.

Just over a third of Basque consumers (35.9%) have taken out mortgages or other types of loans. There was little change in the overall proportion in recent years although it was possible to detect a slow rise in mortgage borrowing (32.5% in 2010) and a parallel drop in other types of borrowing (7.1% in 2010).

In the fourth quarter of 2010, Basque consumer confidence reached 89 points which represented an 8-point improvement in relation to the previous quarter as a consolidation of the recovery witnessed during the last five quarters.

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