The European Central Bank (ECB) will reassess its outlook for gradual euro zone recovery if consumer spending fails to pick up, ECB President Mr Jean-Claude Trichet said in an interview.
Consumer confidence is weaker than it should be at this stage of an upswing, Mr Trichet told the German business newspaper Handelsblatt.
Asked whether recent data had changed the ECB's view from its March meeting that risks were balanced for a gradual economic upturn, Mr Trichet said the "working assumption is of a gradual European recovery."
But he added: "In case our expectations for stronger household consumption and overall domestic demand were not to materialize, we would work out our assessment accordingly, fully in line with our monetary policy strategy."
While Mr Trichet sounded slightly more cautious, analysts said it does not point to the central bank shifting toward cutting interest rates in the foreseeable future. Rather, it echoes similar concern from fellow ECB policymakers, such as Ireland's central bank president Mr John Hurley, who said on Monday that recovery will prove "unconvincing" until consumer spending increases.
The euro drifted down slightly after Mr Trichet's comments. Financial markets are expecting the ECB to keep rates at historic lows of 2 per cent when they gather on April 1st, though they see strengthening chances of a June rate cut.
In March, the ECB cited weak consumption as one risk to its outlook for recovery. Mr Trichet repeated that in the interview.