Consumer confidence ended six months of unbroken increases. The forward-looking consumer sentiment indicator, published by the GfK market research group, slipped to 5.4 points for January, down from the 5.5 points observed in December and disappointing market expectations that the index would rise to 5.7 points. Despite the slight drop, the confidence indicator suggests that the strong recovery will continue in 2011, private consumption joining exports as a key growth driver. The GfK's overall consumer confidence indicator refers to January but its three sub-indices (economic expectations, income expectations and propensity to buy) refer to December. According to the survey, all three sub-indices dropped over the previous month. The economic expectations index edged down to 58.8 points in December from 65.8 points in November, ending six months of strong growth. While consumers believe the recovery is on track, they still have concerns about the sustainability of the strong momentum. In contrast, positive developments in the labour market are expected to continue over the coming year. According to the GfK, the number of unemployed is expected to fall below 3 million in the year to come and the shorter-hours work regime (Kurzarbeit) implemented during the economic downturn will be rolled back. In line with economic expectations, income prospects deteriorated. The income expectations indicator decreased 4.6 points to 40.3 points in December. However, the reading remains 25 points higher than in the same month last year. Furthermore, the propensity to buy slipped by 5.5 points over the previous month to reach 33.8 points, partly rolling back a 16.8 point increase observed in November. The drop in buying intentions reflected lower income prospects and a slight increase in price expectations as a result of higher energy prices.
Germany Consumer Confidence
Consumer confidence halts rapid growth
December 21, 2010
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Germany Economic News
October 24, 2016
The Markit Flash Composite Purchasing Managers’ Index (PMI) rose from 52.8 in September to 55.1 in October.
October 10, 2016
The seasonally- and calendar-adjusted trade surplus increased from EUR 19.4 billion in July to EUR 22.2 billion in August, driven up by recovering exports.
October 7, 2016
In August, industrial production rose 2.5% from the previous month in seasonally-adjusted terms, in contrast to July’s large 1.6% drop, which had been the lowest reading in nearly two years.
September 29, 2016
Consumer prices in September rose 0.1% in a month-on-month comparison, according to preliminary data released by the Federal Statistics Office (Destatis) on 29 September.
September 28, 2016
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