German consumer sentiment dips

BERLIN: A closely-watched survey indicates German consumers are beginning to worry more about the country’s economic situation but remain optimistic overall.

The GfK research group said on Friday that its forward-looking consumer climate index dropped to 9.9 points for September from 10.1 points in August. Still, GfK says the indicator remains high and that the drop does not suggest ‘that the economic motor will stutter or even stall’.

The survey of 2,000 consumers showed drops in all sub categories, with economic expectations, income expectations and willingness to buy all falling. Still, all three categories remained above where they were a year ago.

GfK says uncertainty largely comes from the ‘unstable international situation’ and that domestic German conditions remain favourable, so ‘there is a good chance that the consumer climate will stabilise’.