ZCZC
BCN-22
GERMANY-ECONOMY-INDICATOR-CONSUMER
German consumer morale holds steady despite risks: survey
FRANKFURT AM MAIN, Dec 21, 2018 (BSS/AFP) – German consumers remain in the
mood to shop heading into 2019 but concerns about external risks to the
German economy are mounting, a key survey found Friday.
Market research firm GfK said its forward-looking barometer stood at 10.4
points for January, unchanged from December when morale dipped slightly on
the previous month.
The survey of some 2,000 people showed a mixed picture however.
Respondents were more optimistic about their income expectations at the
turn of the year, boosted by a strong labour market and high wages.
But their outlook for the German economy fell to a near two-year low,
sapped by US-led global trade tensions and uncertainties over Brexit.
Amid concerns of a slowdown in Europe’s export-oriented powerhouse,
consumers were less likely to splash out on big purchases, GfK found.
But overall, the shopping mood was still at a “very good” level.
“The consumer outlook for 2019 remains favourable,” GfK said in a
statement, assuming that the “excellent” labour market conditions continue.
But clouds are gathering, the pollsters cautioned.
“A further escalation in the trade conflict with the United States or a
disorderly departure by Britain from the European Union would certainly weigh
on the consumer climate.”
For 2018, GfK said it still expects to see a real-terms increase in
consumer spending of 1.5 percent.
BSS/AFP/HR/1400