Economy

Germany’s leading consumer confidence index hits an all-time low

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The leading consumer confidence index in Germany, calculated by the research company GfK, fell to its all-time low since 1991 due to concerns about rising energy prices.

Consumer confidence index graph

The value of the September index fell to minus 36.5 points from minus 30.9 points a month earlier. Analysts on average had forecast a decline to minus 31.8 points, Trading Economics reported.

“Worries about a significant rise in energy prices in the coming months are causing many households to behave more cautiously and put money aside to pay future energy bills,” said GfK analyst Rolf Bürkl.

The situation could worsen in the coming weeks and months if fuel supplies, mainly natural gas, are insufficient for the winter season, the expert added.

That view is reflected in a sub-index that shows consumers’ propensity to save – the indicator reached 3.5 points in August, jumping 17.6 points and marking an 11-year high. And the purchase propensity index declined for the seventh consecutive month, falling to minus 15.7 points, its lowest since the fall of 2008.

GfK calculates a leading index for the next month based on the current month’s sub-indexes.

The indicator of consumer expectations for personal finances rose slightly in August after falling to an all-time low a month earlier. The index rose to minus 45.3 points from 45.7 points in July.

The index of consumers’ assessment of the country’s economic prospects rose to minus 17.6 points from minus 18.2 points.

We previously reported that business confidence in Germany is falling.

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