The negative score adds another signal that supports the view of a possible slowdown in demand for polymers.
EU consumer confidence falls in January, according to the latest survey from the European Commission.
The flash estimate indicator for the European Union showed a decrease of 1.6 percentage points to minus 16.5.
And the level remains below its long term average of minus 11.
The decrease in January follows a sharp increase of 3.4 points in December.
However, since the score dived in April, the indicator recovered ground since, excluding the negative readings in October and November.
While one negative reading does not show the start to a downward trend, it does dampen the outlook.
Moreover, EU consumer confidence falls to add another signal to support a view that polymer demand could start to ease.
Since the summer, demand for polymers rebounded across many segments and accelerated in December and January.
While the strength is also linked to a lack of imports and production issues for some markets, players in downstream industries reported healthy activity during the past few months.
However, downside risks emerged in January. For example, the shortage of semiconductors threatening to shut down car production could ease demand later in Q1.
The delays in vaccines and prolonged lockdown raised fears of economic recessions across Europe which could also slow down demand for polymers.
The negative consumer confidence score in January is part of a broader picture of emerging signals that suggest an increase in the probability of a slowdown in demand for polymers in the first half of 2021.
