Chart 3 gives additional evidence on how consumers’ expectations and confidence declined in parallel with private consumption during the recession period. More recently, consumer confidence has increased while the indicator on major purchases, which is an indicator for durable goods consumption, has declined reaching a record low level.
Let me now turn to the second question: How do financial variables and monetary policy affect private consumption decisions and retail trade? Loans to households, whose developments are presented in Chart 4, are an important indicator for the analysis of consumer spending. Hence, the ECB regularly monitors household loans as they are a key channel for the transmission of monetary policy.