The consumer climate index of the Gesellschaft für konsumforschung (GfK) will not hold in March, the high level of the previous months. Apparently, the propensity to make major spending has fallen in the past few weeks.
The current March-value of 10.4 meters, one of the lowest in the past two years, the GRP announced on Tuesday morning. This is a decrease of 0.3 points from February’s value. He is based on a monthly survey of 2,000 consumers, the results of the Association for consumer research. Economists were caught by the decrease on the wrong foot, they had expected on average a slight increase to 10.8 points.
uncertainty increases
The consumers to appreciate while the Outlook for the German economy is more optimistic. They lowered but their income expectations and their willingness to make major expenditures, so the Institute. “Nevertheless, it is expected that consumption this year will be an important pillar of economic development in Germany,” said GfK-expert Rolf Bürkl. “This requires, however, that the uncertainty caused by Brexit and trade conflict, will continue to increase.” The GfK expects that this year, with an increase in private consumption of 1.5 percent.
in hope of a better climate of consumption makes the increase in economic optimism. The Ifo Index, namely, which was released on Monday, rose for the first time after five declines in a row.
German economy, not the recession
Also in the German economy, the business climate improved after it had deteriorated for six consecutive months, as the Ifo Institute in its Manager survey found. A recession should be avoided, but most experts expect this year, with a meager economic growth. The Ifo Institute is expected in about a Plus of 0.6 per cent, after it had passed in 2018 to 1.4 percent.
The good consumer mood, however, can harm, according to GfK, the feeble economic Outlook, yet little. “The stable situation on the labour market with a further rise in employment, ensures that consumers continue to be willing to spend their money – especially since the Saving is due to the low interest rate phase is not an attractive Alternative,” said Bürkl.
source: boerse.ard.de
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