Inflation fears take shine off German consumer morale

AFP, FRANKFURT: Consumers in Germany are more confident about the economy and keen to spend money, but concerned about the impact of inflation on their incomes, a closely-watched survey showed yesterday.
Market research firm GfK's forward-looking consumer confidence reading for April slipped to 9.8 points after 10.0 this month, slightly short of analysts' expectations, it said in a statement.
"Increased inflation in Germany and stronger fears about purchasing power apparently prevented a broader-based recovery," GfK commented.
Looking in more detail, the pollsters found that people expected the current strength of Europe's largest economy to continue.
Good news keeps coming in for Germany even as it battles uncertainty on a number of fronts, including upcoming elections at home and in neighbouring France, US President Donald Trump's tough talk on Berlin's trade surplus, and Brexit.
On Monday, the Council of Economic Experts that advises the federal government upgraded its economic forecasts slightly, predicting 1.4 per cent growth in 2017 after 1.9 per cent last year.
A confident outlook for the future has boosted consumers' readiness to splash out, a GfK sub-index measuring the public's inclination to buy showed.

 

Inflation fears take shine off German consumer morale

AFP, FRANKFURT: Consumers in Germany are more confident about the economy and keen to spend money, but concerned about the impact of inflation on their incomes, a closely-watched survey showed yesterday. Market research firm GfKs forward-looking consumer confidence reading for April slipped to 9.8 points after10.0 this month, slightly short ofanalysts expectations, it said in astatement. Increased inflation in Germany and stronger fears about purchasing power apparently prevented a broader-based recovery, GfK commented. Looking in more detail, the pollsters found that people expected the current strength of Europes largest economy to continue. Good news keeps coming in for Germany even as it battles uncertainty on a number of fronts, including upcoming elections at home and in neighbouring France, US President Donald Trumps tough talk on Berlins trade surplus, and Brexit. On Monday, the Council of Economic Experts that advises the federal government upgraded its economic forecasts slightly, predicting 1.4 per cent growth in 2017 after 1.9 per cent last year. A confident outlook for the future has boosted consumers readiness to splash out, a GfK sub-index measuring the publics inclination to buy showed.