Consumer Confidence Sags in USA and Germany

27 September 2007

NEW YORK: Consumer confidence within the planet's first and third largest economies is on the wane, according to the latest reports from America's Conference Board and German research specialist GfK.

In the USA the Board's Consumer Confidence Index, which had declined in August, fell again in September. It now stands at 99.8, down from 105.6 in August - its lowest level in nearly two years.

Says CB consumer research center director Lynn Franco: "The CCI is now at its lowest level in nearly two years. Weaker business conditions combined with a less favorable job market continue to cast a cloud over consumers and heighten their sense of uncertainty and concern.

"Looking ahead, little economic improvement is expected, and with the holiday season around the corner, this is not welcome news."

The CCI is based on a representative sample of 5,000 US households.

  • In Germany, Europe's largest economy, consumer confidence was at its lowest level in five months, the slippage blamed on America's subprime and housing woes, along with rising local energy and credit costs.

    Reports GfK: "Consumers are nervously following events in the USA [and] expect a dent in Germany's economic upswing because of the strong euro, high energy prices and a weaker US economy."

    The researcher's confidence index for October, based on a survey of about 2,000 people, fell to 6.8 from a revised 7.4 in September.

    Data sourced from multiple origins; additional content by WARC staff