Economic expectations dampen the consumer climate slightly

Findings of the German GfK consumer climate study for February 2010

The GfK consumer climate in Germany will remain virtually stable in March, with a marginal loss of 0.1 points. Economic expectations have recorded a considerable decline, and income expectations and the propensity to buy have dropped back slightly. The overall indicator is forecasting a value of 3.2 points for March 2010, following a revised value of 3.3 points in February.

Anticipation of an increasingly difficult situation on the labor market in the coming months is overshadowing the positive effects of Germany’s Economic Growth Acceleration Act, and causing the income expectations of Germans to stagnate. Public discussion of the precarious budgetary situation of Greece and some other European countries is also unsettling consumers, as they fear negative effects on Germany’s economic development. Consequently, economic expectations are declining and consumers are considering their spending behavior more carefully than in previous months. The propensity to buy is therefore decreasing slightly. more ››

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Economic expectations dampen the consumer climate slightly