German consumer morale fell for the first time in more than 1-1/2 years heading into September as shoppers grew more wary of the impact on Europe’s largest economy of sanctions on Russia and other international conflicts.
Market research group GfK said on Wednesday its forward-looking consumer sentiment indicator, based on a survey of around 2,000 Germans, fell to 8.6 going into September from a downwardly revised 8.9 in August.
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It was the biggest drop in more than three years and below the consensus forecast in a Reuters poll of 30 economists for 9.0, undershooting even the most pessimistic estimate of 8.7. GfK said it was the first decline since January 2013.
“The escalation of the situation in Iraq, Israel and eastern Ukraine as well as the gradually accelerating spiral of sanctions in Russia have now also had a negative impact on the previously extremely optimistic economic outlook of Germans,” GfK analyst Rolf Buerkl said.