Ger­man con­sumer con­fi­dence slips again

The Malta Business Weekly - - NEWS -

There were some dis­ap­point­ing con­sumer con­fi­dence fig­ures from Ger­many.

Ris­ing in­fla­tion and the likely ef­fect of con­tin­u­ing trade ten­sions be­tween the US and EU con­trib­uted to a dip in the GfK con­sumer sentiment in­dex to 10.5 go­ing into Septem­ber from 10.6 the pre­vi­ous month.

An­a­lysts had ex­pected an un­changed fig­ure. This was the sec­ond month in a row that sentiment de­te­ri­o­rated. GfK said:

“De­spite the sec­ond de­cline in a row, con­sumers con­tinue to as­sume that the good con­sumer econ­omy will con­tinue even if the dy­namic could pos­si­bly drop off some­what. There­fore, GfK ex­pects that pri­vate con­sump­tion for this year will in­crease by 1.5 per­cent in real terms and meet the GfK fore­cast made at the be­gin­ning of the year.

“The pos­i­tive out­look for the con­sumer econ­omy will only con­tinue as is if the job mar­ket re­mains sta­ble, which is the cur­rent as­sump­tion, and there are no ad­di­tional risks threat­en­ing from the price front. A fur­ther in­crease in in­fla­tion would cer­tainly dam­pen the con­sumer cli­mate.”

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