The consumer climate in Germany is expected to decline to another record low in July, as the war in Ukraine and supply chain problems push energy and food prices even higher.
The GfK institute stressed that the consumer climate index fell to -27.4 points as we drive in July, after recording a short-lived recovery in June with a revised reading of -26.2 points.
“The ongoing war in Ukraine and distortions in supply chains are causing energy and food prices to soar, leading to a gloomier consumer climate than ever before,” said Rolf Buerkl of GfK.
The latest drop in the consumer climate, however, was not as serious as analysts expected for -27.7 points.
In May, German inflation rose to 8.7%, the highest level in half a century, due to the effects of the Russian invasion of Ukraine and the problems caused by the pandemic.
The consumer climate index predicts the evolution of real private consumption next month.
According to GfK, a change in the index by one unit corresponds to a change of 0.1% on an annual basis, in private consumption.
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
