Germany: Consumer confidence moderates further in April, but remains near historic highs.
March 23, 2017
The forward-looking consumer confidence indicator published by the GfK Group edged down from 10.0 points in March to 9.8 in April, the second consecutive decline.
Looking at the detailed breakdown of the components for March, the latest month for which data was available the fall was driven by a fall in income expectations, a result of rising inflation. The fall was steep enough to offset a recovery in economic expectations, which had dipped temporarily in February amid uncertainty regarding Donald Trump’s policy course. The willingness to buy sub-category also improved, indicating that the strong labor market has tempered the effect of higher inflation. According to GfK, consumer confidence is still high and should remain so in the months ahead.
Author: Christopher Mc Innes, Economist