Luxembourg consumer confidence rises sharply at start of 2025

Luxembourg’s consumer confidence indicator rose sharply across all categories last month, the country’s central bank said Monday.

The monthly indicator by the Luxembourg Central Bank (BCL) saw increased optimism, with the overall indicator rising to -8, its highest level since April 2024.

The projected financial situation of households over the coming year rose to -1, up from -5 in December, while there was a two-point increase in confidence levels about the country’s general economic situation.

The largest change in any of the categories assessed was in plans for major purchases, which rose from -21 at the end of last year to -14 in January.

The economy is predicted to grow by between 2.3% and 2.5% during 2025 and 2026, according to various forecasts from both the country’s official statistics agency Statec and the OECD, the group of the world’s most economically developed countries.

The inflation rate for Luxembourg has increased in recent months, both Statec and the EU’s official statistics agency Eurostat have concluded, with Statec putting the December rate at 1%, although it has not yet released data for January.

Eurostat, which uses a different methodology, put Luxembourg’s inflation rate in January at 2.4%, according to its latest estimate released Monday.