Leading survey shows fall in German consumer confidence

| May 26, 2010 | 0 Comments
”Leading

Consumer confidence in Germany, which is the euro zone’s largest economy, has fallen due to ongoing fears about the weak currency and the austerity measures which many nations have implemented to reduce their debt.

GfK research group said its latest German consumer climate indicator forecasted a value of 3.5 points for June, following a value of 3.7 points in May.

The forward looking indicator, which questioned around 2,000 people, said the euro zone debt crisis has begun to weigh on consumer morale and the nation is uncertain about the economic recovery.

Meanwhile, Germans who traditionally set more aside in savings than they spend, are concerned that their hard-earned cash will become less valuable if the single European currency falls.

In a statement, GfK said: “Germans fear that the Greek rescue packages and the weakening euro could hamper the German economy in its recovery.”

Earlier this month, it was revealed that Germany experienced growth of 0.2% in the first three months of 2010.

Germany was one of the first economies to emerge from recession in the second quarter of last year and the Government is forecasting growth of 1.4% this year.

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