Consumer confidence in Spain dropped sharply in February as a direct result of citizens' perception of the deteriorating economic situation.

The monthly Confidence Indicator, published by the Official Credit Institute (ICO), is based on a questionnaire filled out by 1000 Spaniards representing a cross-section of society and shows a figure between 0 and 200, over 100 reflecting a favourable and optimistic perception and under 100 reflecting a negative and unfavourable perception.

February's figures show a 1.5 point drop compared with the previous month, reaching a new low of 48.6.  The Official Credit Institute (ICO) does not expect consumer spending to increase in the short term and therefore sees no immediate upturn in the economic situation.

Consumers were specifically asked to evaluate the economic situation of their family, the employment market and the country's economy.  The resulting figures represent a new low for the country.

The ICO president, Aurelio Martínez, reported that consumers did however expect lower inflation and lower interest rates over the next 12 months. 

He also noted that 'there could be a slight increase in confidence by summer if inflation rates are lowered as expected and because of the resulting repercussions on mortgages.'  'Every point they drop,'  he added, 'means 6 million euros going directly into the pockets of Spanish families.'