Consumer sentiment in the euro zone’s two biggest economies diverged sharply in August, with French consumers benefiting from new government measures while concerns over rising energy bills hit Germans, surveys showed on Friday.
France’s official statistics agency Insee said its consumer confidence index rose to a reading of 82 from 80 in July, above expectations of 79 in a Reuters poll of economists. That was the first rise in consumer sentiment in seven months.
In sharp contrast, a survey on Friday showed that German consumer sentiment is set to hit a record low for the third straight month in September as consumers brace for ever-higher energy bills.
The GfK poll showed its consumer confidence index fell to -36.5 for September, against a Reuters poll’s expectation of -31.8.
The institute said German consumers were having to set aside money for future energy bills and that the situation could worsen if winter gas shortages drive up prices further.
German households, already facing the prospect of gas taxes, could be forced to pay an even bigger bill during the current energy crisis, Hauck Aufhaeuser Lampe chief economist Alexander Krueger said, weighing more heavily on government spending. consumer in Europe’s largest economy.
“What should be clear is that the looming recession will be fueled primarily by consumption. Once the government caused the gas disaster, it should provide much more relief than it is currently signaling,” he said.
Source: CNN Brasil
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