German Consumer Confidence Keeps Falling As Per Survey

German consumer confidence is expected to deteriorate for a second consecutive month in October, a sentiment survey released Friday showed, an indication that crises in Russia, Ukraine and elsewhere are taking their toll on the mood of businesses and households in Europe’s biggest economy.

The monthly survey of GfK market research group shows consumer confidence falling to 8.3 points for October from an unrevised 8.6 points in September. Nonetheless, confidence remains “at a good level,” GfK said.

Despite some recent economic weakness, Germany unemployment is near record lows, incomes are rising and borrowing costs are historically low.

GfK uses survey data from the current month to derive a figure for the month to come. Economists polled by The Wall Street Journal predicted an October reading of 8.5 points.

“It is above all the various international crises which are behind a slowdown in the consumer climate at present and the first signs of uncertainty are beginning to show among German consumers,” GfK said, adding that if the crises escalate further, a deterioration in general conditions in Germany—which have so far held up—cannot be ruled out.

“In this case, there is a danger that private consumption would no longer fulfill its role as a key pillar of the German economy,” GfK added.

via WSJ

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza