Germany: Consumer confidence slips amid higher energy prices
March 27, 2012
Consumer confidence deteriorated slightly among German consumers amid surging energy prices. The forward-looking GfK consumer confidence indicator for April inched down to 5.9 points from 6.0 points in March. The reading fell short of market expectations that had the index remaining unchanged at 6.0 points and represented the first fall in consumer sentiment in seven months. Together with the overall consumer confidence indicator for April, GfK also published detailed data referring to March. According to the Institute, income expectations registered a sharp drop in March, as a majority of consumers were more concerned about the recent surge in prices for petrol and diesel, which are likely to dent their purchasing power. In addition, consumers' propensity to buy remained stable over the previous month. Only economic expectations improved, as consumers' showed less concern about the potential default of Greece as a result of the approval of the second rescue package.
Author: Ricardo Aceves, Senior Economist