Berlin, Germany (4E) – Confidence by German consumers is forecast to fall in September due to geopolitical factors, according to a survey by a market research group released Wednesday, raising the concerns about domestic consumption’s ability to offset weakness in the country’s exports.
GfK’s forward-looking consumer confidence index dropped to 8.6 from August’s revised reading of 8.9. The index was based on data gathered from a survey of 2,000 households.
Analysts surveyed by The Wall Street Journal forecast the gauge to post a score of 9.0 in September.
Meanwhile, the index for economic expectations tumbled 35.5 points to 10.4 points this month, marking the sharpest drop since the survey started in 1980, the research group said.
Gfk also said that declining economic mood did not affect much the propensity to consume, as the index for willingness to buy slightly fell 1.7 points to 49.3 in August.