Higher bank interest rates in many European countries, rising energy prices, the rise of the Euro against the dollar (affecting exports), rising commodity prices, and a tightened credit market have affected consumer spending

The S&P has maintained that inflation is hurting profitability at European consumer goods companies. It says that rated companies have offset cost inflation through efficient process management as well the induction of higher pricing. The S&P says that brand manufacturers may opt for further price increases and that cheaper input costs for the European consumer goods companies due to the weak dollar are being offset by reduced sales in the US.