Germany Sept consumer climate defies recession fears – survey

27 September 2011 17:36  [Source: ICIS news]

LONDON (ICIS)--Germany’s consumer sentiment has dipped only marginally in September, despite recession fears, a market research group said on Tuesday.

However, uncertainties caused by the eurozone debt crisis have made consumers less willing to commit to big-ticket purchases, Nuremberg-based GfK said.

GfK said its September consumer climate index for Germany was 5.2 points, compared with 5.3 points in August. The index is based on a monthly survey of 2,000 consumers.

GfK said that overall, German consumers remain optimistic about their prospects for employment income.

Many expect to make more money this year as employment trends in Europe’s largest economy remain positive, the group said.

While consumers expect economic growth to slow going forward, it is “currently unlikely” that Germany’s economy will go into recession, GfK said.

However, given Germany’s reliance on exports, the country will not escape recessionary trends in its key export markets, such as the US, GfK said.

At the same time, many consumers remain wary of making big-ticket purchases at this time, GfK said.

Consumer purchase propensity, as measured under GfK’s index, declined in September from August. The decline was due to the ongoing eurozone debt crisis, which has shaken consumers’ confidence in political leaders’ ability to find a sustainable solution, the group said.

“This loss of confidence is now apparently showing up as a negative factor for consumers’ purchasing propensity,” it added.

In related news, ICIS reported that stocks in the European chemical sector rose on Tuesday on hopes that the International Monetary Fund (IMF) and eurozone leaders will agree on a rescue package to deal with the eurozone debt crisis.

Read Paul Hodges’ Chemicals and the Economy Blog


By: Stefan Baumgarten
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