Consumer confidence rises for the first time in 4 months in Germany

Despite the rise in inflation, the consumer confidence index in Germany increased 0.9 points to -41.9 in November.

GfK, a market research company based in Germany, announced the results of the Consumer Confidence Index for next month.

In the statement, it was indicated that the Consumer Confidence Index, which was revised in September and measured at minus 42.8 points for this month, increased by 0.9 points to minus 41.9 points in November.

The market expectation was for the index to rise to minus 41.9 points. The index eventually rose 0.4 point to minus 26.2 percent in June.

‘CONSUMERS STILL VERY TENSE’

GfK researcher Rolf Buerkl said it was “absolutely” too early to speak of a turnaround in consumer confidence.

Noting that the situation remains “very tense” for consumer confidence in Germany, Buerkl said: “Inflation in Germany has risen to 10 percent recently. Concerns about the stability of energy resources continue to rise,” he said. .

FACING THE ENERGY CRISIS

Meanwhile, Germany faces a spiraling energy crisis triggered by Moscow’s decision to stop the flow of gas through the Nord Stream 1 pipeline.

As war concerns in the region continue to weigh on energy supplies, the German government is scrambling to keep the wheels of industry turning, lights on and homes warm this winter.

According to economists, high energy prices are causing a decrease in the purchasing power of consumers and making production unprofitable for many companies.

Meanwhile, annual inflation in Germany, which was 7.9 percent in August, rose to 10 percent in September with the latest rise in energy and food prices, reaching the highest level since 1951. ( AA)