Worries over slowing global growth and rising trade tensions hit European share prices hard at the end of 2018. While early 2019 saw a rally, there remains considerable scepticism over the prospects for the European economy and its listed companies.

I think much of this scepticism is misplaced and the role of the European consumer is an important reason why.

Household spending drives around 70% of the US economy. It’s a lesser share in Europe – more like 45-50% depending on the country – but that’s still a very sizeable proportion. And, for the first time in around a decade, the European consumer is in a much better place. Official data tell us that the picture is improving, and my own experience of talking to companies bears that out too.

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