Connect with us

Hi, what are you looking for?

Capital Business
Capital Business

World

German consumers stay gloomy

FRANKFURT, Jun 23 – Austerity measures being prepared by the German government have unsettled German consumers, the closely watched GfK confidence survey showed on Wednesday.

The latest poll of some 2,000 people in Europe\’s biggest economy resulted in an indexed 3.5 points, the same level as for June, the research group said in a statement.

Although consumers\’ propensity to head to the shops showed a clear rise, in part thanks to the 2010 World Cup in South Africa, talk of higher charges to rein in Germany\’s public deficit and debt has nonetheless undermined sentiment.

Amid such an environment, improved economic and job market indicators were unable to brighten consumers\’ moods, GfK said, though their assessment of the current economic environment did mark a modest rise.

German Chancellor Angela Merkel has unveiled an austerity plan that foresees more than 80 billion euros (98 billion dollars) in spending cuts between next year and 2014.

Critics in Germany and abroad have warned the belt-tightening could stifle economic growth, but some economists point out that the prospect of healthier public finances has actually boosted activity in the past.

Berlin has been pressed by neighbours to encourage more consumer spending, but a government source said Tuesday there was "no pressure" from Washington on the issue ahead of a G20 summit of advanced and developing economies in Toronto.

The main effect of the German austerity measures was seen in consumers\’ assessment of their personal situation, which tumbled from 23.7 points to 8.2 points on concerns the austerity package could pose heavier financial burdens.

The stable general indicator was an improvement meanwhile from the small drop of 0.2 points between May and June, GfK noted.

Advertisement. Scroll to continue reading.
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Headlines

NAIROBI, Kenya, Mar 16 – The World Bank has given the Kenyan government USD 60 Million (Sh6.1 billion) to help combat the deadly coronavirus pandemic...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Coronavirus

NAIROBI, Kenya, Mar 25 Kenyans who will fail to pay their dues by April 1 will not be listed in the Credit Reference Bureau...

Headlines

NAIROBI, Kenya, Mar 13 – Meet Kennedy Okaka, the CEO of PH Africa which manufacturers and distributes hand sanitizers. Okaka speaks to Capital Business...