German consumer sentiment bearish
Thursday, August 30, 2007
GERMAN consumer sentiment was shaken this month by the turmoil on financial markets caused by the US sub-prime crisis, a poll showed yesterday, reflecting fears that the country's economic honeymoon may end.
The consumer sentiment index calculated each month by market research group GfK dropped to 7.6 points from 8.5 points in July, the think-tank said.
The index had remained stable between June and July.
"The economic euphoria among Germans reached its all-time high in May but is now declining," the institute said.
"On top of the known risks for the economy, such as the strong euro and rising interest rates, the unexpected turbulence on the financial markets served to dampen the mood.
"An increase in the price of bread and dairy products also prompted consumers to adjust their disposable income expectations," it added.
Milk and grain prices in Germany have been driven up by Chinese demand and by the use of land for the cultivation of alternative fuel products instead of food.
AFP
The consumer sentiment index calculated each month by market research group GfK dropped to 7.6 points from 8.5 points in July, the think-tank said.
The index had remained stable between June and July.
"The economic euphoria among Germans reached its all-time high in May but is now declining," the institute said.
"On top of the known risks for the economy, such as the strong euro and rising interest rates, the unexpected turbulence on the financial markets served to dampen the mood.
"An increase in the price of bread and dairy products also prompted consumers to adjust their disposable income expectations," it added.
Milk and grain prices in Germany have been driven up by Chinese demand and by the use of land for the cultivation of alternative fuel products instead of food.
AFP
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