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Germany: Slight drop in consumer confidence expected in September

Staff Writer |
The forward-looking consumer confidence indicator for September released by the GfK Group decreased slightly to 10.5 points, down from August’s 10.6 points.

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Backward-looking indicators for August—which are released in conjunction with the forward-looking sentiment index—painted a mixed picture.

In August, economic expectations jumped from the previous month. This comes amid a robust economy, with recent data showing that growth picked up in the second quarter of the year. Consumers were more optimistic about the economy despite lingering uncertainties regarding the trade spat between the United States and the European Union.

Income expectations and consumers’ propensity to buy, however, decreased in August. The decrease in income expectations was possibly linked to rising inflation on the back of higher energy prices. Consumers’ willingness to buy also inched down but remained elevated nonetheless, chiefly due to a tightening labor market.

FocusEconomics Consensus Forecast panelists expect private consumption to expand 1.5% in 2018, which is unchanged from last month’s estimate. For 2019, panelists see private consumption growing 1.7%.

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