The Strategist

Consumer confidence in German economy falls deeper than expected

07/27/2022 - 10:06

According to research firm GfK, consumer confidence in the economy in Germany decreased to minus 30.6 points in August from a revised July result of minus 27.7 points.

Adam Jones
Adam Jones
Analysts surveyed by DailyFX expected a value of minus 28.9 points. The July reading was changed from minus 27.4 points to minus 27.7 points.

Additionally, "consumer readiness to buy" dipped to minus 14.5 points from minus 13.7 points a month earlier, while the index of expectations for wage growth dropped to its lowest level since the count's inception, falling to minus 45.7 points from minus 33.5 points.

The company also noted that the nation's index of current economic expectations dropped from minus 11.7 points a month earlier to minus 18.2 points.

"Fears regarding the sufficiency of gas supplies for businesses and households for the upcoming winter have been raised in addition to concerns about supply chain interruptions, the conflict in Ukraine, and rising energy and food prices. As a result, consumer confidence is declining," Rolf Burkl, a GfK consumer sentiment analyst, commented.