- POSTED: 27 Aug 2014 14:26
Consumer confidence in Germany is faltering in the face of growing concern about the economic impact of the crises in Ukraine and the Middle East, a new poll found on Wednesday (Aug 27).
FRANKFURT: Consumer confidence in Germany is faltering in the face of growing concern about the economic impact of the crises in Ukraine and the Middle East, a new poll found on Wednesday (Aug 27).
"The escalation of the situation in Iraq, in Israel and in eastern Ukraine, as well as the accelerating spiral of sanctions with Russia is finally having a negative effect on consumers' previously optimistic economic expectations," market research company GfK said in a statement. "Uncertainty with regard to the outlook for the German economy has risen noticeably," the statement said.
At the same time, consumers' income expectations and their willingness to spend money were still "relatively robust," GfK found. "They have fallen somewhat in the wake of the drop in economic expectations, but are still largely at a relatively high level," it said.
Looking ahead to next month, GfK's headline household confidence index was forecast to drop to 8.6 points in September from 8.9 points in August. This reading is based on responses from about 2,000 households regarding their expectations about pay and the economy as a whole in the coming months, as well as their willingness to spend.
Sentiment in Europe's top economy is currently floundering amid uncertainty about possible fallout from the crises in Ukraine and Iraq. Earlier this week, the Ifo business climate survey fell more than expected to its lowest level in 13 months.