German consumer confidence falls for first time in over a year

| October 26, 2009 | 0 Comments
German consumer confidence falls for first time in over a year

The GfK economic research institute has revealed a fall in German consumer sentiment.

According to the institute, a survey of around 2,000 individuals revealed a decline in confidence for the first time since September 2008, as a result of rising petrol prices and forecasts for higher unemployment.

According to the institute, confidence dipped to 4.0 points in October from 4.2 points the previous month.

The index shows that concerns of rising unemployment are rife. Currently, there are around 3.3 million unemployed in Germany.

Meanwhile, Germany’s car scrappage scheme, which pays drivers €2,500 to get rid of their old cars and replace it with a more environmentally friendly car, has now ended.

While the scheme was extremely successful, the end of the scheme means the number of people shopping for cars has decreased, according to GfK.

In other news, a key survey by the Ifo research institute showed that German business confidence had reached its highest level for more than a year.

Germany, which is Europe’s largest economy, become one of the first major economies to exit recession after experiencing positive growth in the second quarter of 2009.

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