Germany: Consumer confidence falls in January to lowest level in over a year
December 21, 2012
The forward-looking GfK consumer confidence indicator dropped to 5.6 points in January. The monthly reading was down from both the 5.8 points observed in December (previously reported: 5.9 points) and market expectations, which had the index rising to 5.9 points. The January result represents, in fact, the lowest level in the index seen since December 2011.
Together with the overall consumer confidence indicator, which refers to January, the GfK Institute also releases data for December. According to the Institute, consumers' economic expectations as well as willingness to buy dropped over the previous month, reflecting the current slowdown in economic activity and households' view that the economic outlook will deteriorate in the coming months. In contrast, consumers' expectations for future earnings compared to the previous month.
Author: Ricardo Aceves, Senior Economist