Euro crisis weighs on German consumer sentiment: GfK

26th May 2010, Comments 0 comments

The eurozone financial crisis and the euro's fall has begun to weigh on consumer sentiment in Germany, Europe's biggest economy, the GfK research group said on Wednesday.

The group's consumer confidence index, a survey of around 2,000 people, slipped to 3.5 points for the month of June, from a revised 3.7 points in May.

Germans, who typically set more aside in savings than they spend, are worried their nest-eggs will be crushed if the single European currency plunges or if inflation begins to pick up.

GfK also found Germans have less confidence that the economic recovery will be solid, and feel government efforts to rein in spending will not be good for personal incomes. They also fear tax hikes.

Germany, the world's second biggest exporter, has come under pressure from its eurozone partners and from Washington to do more to boost consumer demand in order to reduce its large trade surplus.

© 2010 AFP

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