German consumer morale darkens unexpectedly
BERLIN: The mood among German shoppers deteriorated unexpectedly for the second month in a row heading into September, a survey showed, casting some doubt about the strength of a consumer-led upswing in Europe’s largest economy.
Household spending was the main growth driver in the first half of the year, together with higher state consumption and investments in construction, providing a buffer against an uncertain trade environment.
The GfK research institute said its consumer sentiment indicator, based on a survey of around 2,000 Germans, fell to 10.5 going into September from 10.6 a month earlier.
Analysts polled by Reuters had forecast an unchanged reading of 10.6.
“While economic expectations improved, income expectations and the propensity to buy declined a bit,” GfK researcher Ralf Buerkl said. But all sub-indicators remained on a relatively high level overall, he added. — Reuters