Consumer sentiment in Germany is forecast to hit a new record low for the third month in a row in September as households prepare for the possibility of energy bills soaring, a survey showed.
The GfK institute reported that the consumer sentiment index fell to -36.5 points in September, continuing a streak of historic lows that began in July.
Analysts expected the index to be -31.8 points.
“The fear of significantly higher energy costs in the coming months is forcing many households to take precautions and put money aside for future energy bills,” said GfK executive Rolf Buerkl, who added that this is further squeezing consumer sentiment. as there was less money for other purchases.
The institute warned that the situation could get even worse in the coming weeks and months if there is not enough fuel, particularly gas, to heat homes, pushing bills even higher.
German households will have to pay several hundred euros more each year for gas under an arrangement to be imposed from October 1 until March 2024 that is intended to help utilities cover the cost of replacing Russian supplies.
Source: Capital
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