Ger­man con­sumer con­fi­dence slips over refugee in­flux

Kuwait Times - - BUSINESS -

BERLIN: Ger­man con­sumer con­fi­dence slipped for a fourth month in a row in Novem­ber as shop­pers wor­ried about the im­pact of a record in­flux of asy­lum seek­ers, a sur­vey found Thurs­day.

A monthly in­dex cal­cu­lated by mar­ket re­search firm GfK from ques­tion­ing 2,000 con­sumers slipped 0.2 points to 9.4, al­though the rate of de­cline had slowed from Septem­ber and Oc­to­ber.

“The per­sis­tently strong in­flux of asy­lum seek­ers is caus­ing eco­nomic op­ti­mism to dwin­dle fur­ther,” GfK said in a state­ment as Ger­many expects around one mil­lion new­com­ers this year.

About 40 per­cent of re­spon­dents said they ex­pected un­em­ploy­ment to rise, and most linked the trend to the refugee cri­sis, al­though few ex­pected to lose their own jobs. “The eco­nomic mood of cit­i­zens cur­rently seems to be much more pes­simistic than the real econ­omy is, or how ex­perts judge it to be,” with lead­ing econ­o­mists pre­dict­ing 1.6 per­cent GDP growth next year, said the in­sti­tute. Ger­mans’ in­come expectations also fell, but their will­ing­ness to spend bucked the trend and rose slightly at the start of the Christ­mas shop­ping sea­son, the sur­vey found, point­ing to rock-bot­tom in­ter­est rates and low en­ergy prices. Look­ing to De­cem­ber, GfK’s head­line house­hold con­fi­dence in­dex was forecast to slip fur­ther to 9.3 points.

“Fur­ther de­vel­op­ment of the con­sumer mood will also de­pend, among other things, on how con­sumers will re­spond to the ter­ror­ist at­tacks in Paris of Novem­ber 13,” the re­port said. “If the un­cer­tainty among con­sumers rises sharply due to the events in Paris and pos­si­ble fur­ther at­tacks or at­tempted at­tacks, and some peo­ple, fear­ing fur­ther at­tacks, shun crowds such as pedes­trian zones, this will fur­ther weigh on con­sumer sen­ti­ment.” — AFP

Newspapers in English

Newspapers from Kuwait

© PressReader. All rights reserved.