Consumer confidence predicts future spending, driving economic fluctuations in Europe.
Consumer confidence can predict how much people will spend in the future. Different countries show varying levels of accuracy in predicting spending based on confidence measures. In times of financial trouble, confidence in personal finances can better predict spending in France, Italy, and Portugal. However, in Germany, confidence measures don't add much to predicting spending compared to other economic indicators. Changes in consumer confidence can independently drive economic ups and downs.