NUREMBERG: The ongoing turmoil across the world's stock markets has taken its toll on German consumer confidence, which slipped for the first time in six months.
Market researcher GfK's latest confidence index for September reveals a fall to 7.6 from a revised 8.5 in August.
Consumer confidence in the economic outlook fell to 48.4 from 64.8 and a measure of income expectations dropped to 9.2 from 27.9. The decline in willingness to spend was less pronounced, with a sub-index declining to 6.4 from 9.
GfK says: "The current turmoil in the international financial markets is consolidating consumer assumptions that the dynamic economic growth Germany has been enjoying is likely to lose some of its pace. The strong euro and rising interest rates also support this negative assumption."
The firm points out, however, that the country's unemployment figures, which are expected to have fallen in August, offer "conditions . . . for the consumer climate to resume its upward trend".
Data sourced from Bloomberg.com (Germany); additional content by WARC staff