Consumer confidence is expected to fall in September
The consumer confidence index, which this month was -24.6 in Germany, is expected to decline by 0.9 to -25.5 in September due to the economic downturn and unusually high inflation.
GfK, a Germany-based market research company, announced the results of the Consumer Confidence Index for next month.
The statement states that the consumer confidence index decreased 0.9 points to -25.5 in September.
The index was expected to rise to -24.3.
HIGH INFLATION AFFECTS FOOD AND ENERGY
In his assessment, GfK researcher Rolf Buerkl predicts that the chances of a sustainable recovery in consumer confidence this year are gradually diminishing. He used the phrase.
Pointing out that consumer confidence does not show a clear upward or downward trend for the moment and remains generally at a very low level, Buerkl underlined that private consumption will not make a positive contribution to the German economy this year, but rather everything contrary. will affect Germany’s growth prospects.
The GfK researchers also found that those surveyed in August had lower income expectations, as rising food and energy prices negatively impacted people’s purchasing power.
According to GfK, the sharp rise in prices, together with growing concerns about job losses, are weighing on consumer confidence.
THE ECONOMY DECLINED BY 0.1 PERCENT IN THE FIRST QUARTER
On the other hand, according to data from the Federal Statistical Office (Destatis), the German economy contracted by 0.4 percent in the last quarter of last year and by 0.1 percent in the first quarter of the year, but not managed to grow in the second quarter of the year.
While crises such as the Covid-19 epidemic, supply chain disruptions, and the war between Russia and Ukraine in recent years have brought weaknesses in the German economy to the surface, the fact that many countries, especially China , can produce more and more Imported goods from Germany and rising interest rates coupled with high inflation have hit the German economy, making it difficult to continue growing.
Slowing global growth, declining industrial production, and consumer efforts to cope with rising inflation are also negatively affecting the economy.
THE CONFIDENCE OF THE BUSINESS WORLD FALLED
Business confidence in the German economy worsened for the fourth time in a row in August.
According to the results of the German Business Survey conducted by the Institute for Economic Research (Ifo) in August with the participation of approximately 9,000 companies, the Ifo business environment confidence index, which was 87.4 points last month, decreased to 85.7 points in August due to Due to the sharp deterioration in the future expectations of company managers, the fall occurred for the fourth consecutive month. (AA)