German consumer confidence expected to fall further

| April 27, 2011 | 0 Comments
German consumer confidence expected to fall further

Consumer confidence in Germany, which is the euro zone’s largest economy, is expected to fall further in May, according to the GfK research group.

The market research company said its forward looking consumer sentiment index, based on a survey of about 2,000 people, will fall to 5.7 in May from April’s reading of 5.9.

The survey suggests that consumers are struggling with higher food and energy prices.

Commenting on the survey, GfK said: “Higher prices, the nuclear disaster in Japan and the escalating political unrest in North Africa and the Middle East all mean that the general conditions for German consumers no longer appear quite as positive at present.”

Meanwhile, the measure of households’ economic expectations dipped to 47.3 in April from 49.5 in March. A gauge of income expectations dived from 40.5 to 35, while an index of consumers’ willingness to spend edged lower to 34.2 from 34.3.

However, despite the figures, Germany is driving the recovery of the euro zone with strong economic growth, while unemployment continues to fall, due to a Government initiative.

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