Berlin, Germany (4E) – German consumer sentiment is predicted to slightly decline going into September after reaching its highest level in six years in August, as the economic recovery is expected to ease in the coming months, according to a forward-looking survey released Wednesday.
Market research group GfK’s consumer sentiment gauge fell to 6.9 points in September from 7.0 points in the previous month, missing economists’ forecast of a slight gain to 7.1 points. GfK’s overall consumer sentiment index may refer to September, but all sub-indicators refer to the month of August.
Consumers’ big-ticket purchases climbed to its highest level since December 2006, as the corresponding indicator increased to 44.4 in August, an increase of 3.7 points.
German consumers’ view of the economy fell for the first time in four months in August, with the indicator declining to 1.8 from July’s 4.3 reading.
The approximately 2,000 consumers surveyed by GfK every month show lower income expectations in August after reaching a two-year high in July.
The income expectations index fell for the first time in five months and is now at the 37.2 level.
Fast-rising food prices have boosted Germany’s annual inflation rate to its highest level since December. The country’s consumer price index rose for the third straight month, to 1.9 percent in July from 1.8 percent a month earlier.