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Consumer Climate Slightly Gloomier
NUREMBERG, Germany, August 29 /PRNewswire/ --
- Findings of the German GfK Consumer Climate Survey for August 2007
- Late Summer has Seen a Slightly Gloomier Consumer Climate This Year.
While Buying Propensity Remained Generally Stable, the Economic Outlook and
Income Expectations Were Slightly Down on Their Previous Strong Position.
Following the Revised 8.5 Points in August, the Consumer Climate Forecast for
September is 7.6 Points.
Along with the prevailing economic risks, the unexpected turmoil in the
international financial markets has affected the economic outlook in August,
putting a damper on the euphoria of prior months. In addition, an increase in
the price of some food products induced consumers to revise their income
expectations downwards.
The economic euphoria among Germans reached its all-time high in May, but
is now declining. Compared with the prior month, the indicator lost a good 16
points and stands at 48.4 now. However, this level is still very good
compared with the same period one year ago, when the indicator was 37 points
lower.
The income expectations of German consumers were dampened in August. The
indicator lost almost 19 points on the prior month to stand at 9.2 points,
although it is still up 13 points on August 2006.
Buying propensity has remained virtually unaffected by the downward trend
in economic outlook and income expectations. The indicator lost a negligible
2 points and is now 6.4 points. Overall, the trend in propensity to buy
indicated a more marked polarization between high and low income groups this
month.
The consumer climate has dropped for the first time since March this
year, mainly as a result of a marked deterioration in income expectations.
Following a revised 8.5 points in August, the indicator forecast for
September is 7.6 points.
Marion EisenblÀtter
Tel: +49-911-395-2645
marion.eisenblaetter@gfk.com
