GfK: German Consumer Confidence Declines Slightly
Consumer confidence in Germany declines for the second month in a row heading into September as income expectations fell. Data of the GfK research institute showed, that its consumer sentiment indicator fell to 10.5 from 10.6 a month earlier. Analysts had forecast an unchanged reading.
Although economic expectations have improved, income expectations and the propensity to buy declined in August. The index of economic expectations rose to 22.2 in August from 15.7 in July. Despite the trade conflict with the US, as well as rising energy prices, the German consumer again demonstrates greater economic optimism. Meanwhile, the indicator of income expectations was 52.6 against 57.5 a month ago. The lower value was last seen in November 2017 (47.9 points).
At the same time, the propensity to buy dropped to 55.2 from 56.2 in the previous month. Compared to the previous year, the estimate decreased by only three points, which indicates the stability of the consumer trend.
Analysts suggest, that further increase in inflation would certainly dampen the consumer climate. The Federal Statistics Office said on Wednesday that rising prices, especially of energy and food, had offset salary increases granted to 17 million employees under collective bargaining agreements in the second quarter, when inflation was 2%.