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- German Gfk consumer confidence index declines to 10.1 in July
German Gfk consumer confidence index declines to 10.1 in July
Market research group GfK released its consumer confidence index for Germany on Thursday. German Gfk consumer confidence index fell to 10.1 in July from 10.2 in June.
Analysts had expected the index to remain unchanged at 10.2.
The decrease was driven by declines in economic expectations and the willingness to buy. The previously unsuccessful attempts to find a solution to the debt crisis in Greece and a possible Greek default also weighed on the index.
The economic expectations index plunged to 13.4 points in July to 24.9 in June, while the willingness to buy index fell 5.6 points to 57.0.
The income expectations index climbed by 5.2 points in June and is now at 57.2.
"Despite the dampened climate, private spending remains a pillar of economic growth for Germany. However, the latest development also shows that the consumer climate is exposed to risks from international crises. The struggle for a solution to Greece's debt crisis, which has recently escalated, making a default more and more likely, could cause the motor for consumption, which has been running at top speed, to stutter," Gfk noted.
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