German consumer mood still uncertain

27th August 2004, Comments 0 comments

27 August 2004 , NUREMBERG - The mood among German consumers remained uncertain in August, with no clear improvement in sight, the country's leading market research group reported Friday. The GfK market research company of Nuremberg, in its closely-watched monthly consumer confidence report, said that the mood was especially glum in eastern Germany. In its survey of 2,000 consumers, the GfK said that Germans were slightly more upbeat about the overall economy and employment prospects. But they were more p

27 August 2004  

NUREMBERG - The mood among German consumers remained uncertain in August, with no clear improvement in sight, the country's leading market research group reported Friday.

The GfK market research company of Nuremberg, in its closely-watched monthly consumer confidence report, said that the mood was especially glum in eastern Germany.

In its survey of 2,000 consumers, the GfK said that Germans were slightly more upbeat about the overall economy and employment prospects. But they were more pessimistic about their own income expectations.

The report noted that the latest indicators showed some improvement over those in July, when all the indicators pointed downward.

But given the mood among consumers in August the overall consumer confidence index heading into September is down to 2.0 points, from a revised 3.0 points as the month of August got underway.

"The good news is that there no longer is a consistent downward trend of the individual indicators. However, the bad news is that there is no marked upward trend either," the GfK said.

It said that one bright spot is that German consumers are again prepared to start making larger purchases again.

"Overall, it is apparent that the outlook of consumers in western Germany is far more positive than that of their fellow citizens in eastern Germany," the GfK said.

In reporting index figures for individual indicators, it said the indicator for economic growth rose by 2.1 points in August to 18.4 points. But this was far short of compensating for the 8.5 points drop in July.

As to income expectations, the August indicator dropped by a further 5.5 points to minus 19.5 points, the lowest level since March 2003, the GfK said. It said the downturn in August was almost exclusively due to the negative mood in eastern Germany.

The indicator for German consumers' propensity to buy improved by 10 points to 27.8 points in August, nearly offsetting the 13 point drop in July, the GfK said. The improvement was due to a brighter mood in western Germany, while consumers in the east remain cautious.

DPA

Subject: German news 

 

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