In Germany, the consumer confidence index from GfK, evaluating the degree of consumer confidence in the power of economic surge dived to about 10.8 in May against 10.9 in April. The fall of the index actually corresponds to the forecast of leading market experts.
The press release of GfK noted that the surge of geopolitical tensions seems to affect the mood of consumers in the number one economy of the European Union.
Confrontation of the West with Russia in the Syrian conflict has exacerbated and clearly causes growing alarm among consumers in Germany, which in turn affects future economic prospects.
After a stable development in the previous month, economic optimism suffered in April. The indicator of economic expectations in April dived to 37.4 versus an outcome of 45.9 in March. The escalation of the Syrian crisis along with the United States’ protectionist trade policy is harassing consumers and can even affect previously excellent economic prospects. It’s driven by powerful fluctuations in stock markets, which also point to the emerging uncertainty among consumers.
The sub-index of expectations about income in April headed south to 53.5 from 54.9 in March. The indicator of intentions for making major purchases in April jumped to 60.0 from 59.1 in March, which was ensured by the upbeat situation in the labor market.
General conditions on the domestic market still appear to be extremely favorable. Employment is going up literally every month. At the same time unemployment is heading south. As a result, experts recently increased their growth forecasts this year, with most of them suggest that last year the growth of 2.2% could even inch up in 2018.
The next GfK consumer climate research is going to be officially uncovered on May 24, this year.