Germany: Consumer confidence moderates on geopolitical tensions
August 27, 2014
Confidence among German consumers weakened slightly amid escalating tensions in Iraq, Israel and Ukraine and the gradual intensification of sanctions in Russia. The forward-looking consumer confidence indicator published by the GfK edged down from 8.9 points in August to 8.6 points in September. The print, which represented the lowest point in three months, came in slightly below the 8.9 points the markets had expected.
In addition to the overall consumer confidence indicator, which estimates consumer confidence in the coming month, the GfK elaborates on three sub-indicators, which refer to the previous month. According to GfK, in August households’ expectations for the overall economy fell drastically and recorded a decline of unprecedented magnitude against the backdrop of intensified international conflicts. Conversely, the sub-indexes of income expectations and consumers’ willingness to buy both moderated only slightly and remained at high levels.