Sunday, 29 April 2012

High petrol prices are affecting the consumer

Findings of the GfK consumer climate study for Germany for April 2012

Consumer sentiment in Germany was divided in April. While the overall economic outlook was viewed more optimistically, the high level of income expectations dropped slightly, and willingness to buy saw significant losses. Following a revised value of 5.8 points in April, the overall indicator is forecasting a value of 5.6 points for May.

Consumers are evidently coming to the realization that a recession in Germany can be prevented, and the forces which boost the domestic economy are increasingly gaining the upper hand. As a result, the economic expectations have risen for the second time in a row. In contrast to this, increasing concerns about inflation are weakening consumer optimism, as shown by the decrease in willingness to buy. Consumers see their buying power as being primarily affected by the increase in energy prices. This is shown by the slight drop in income expectations.

GfK SE, Corporate Communications

Nordwestring 101
90419 Nuremberg

Full GfK Press Release .

Once again Germany and especially Berlin has become a prime investment target for Investment in the German Property Market by Private Investors and Property Funds. Property Financing has become more readily available again but much more restrictive than during the last investment cycle 2005 to 2008.

This development is supported by a constant flow of positive news from the German economy which is also provided in this blog.

Uwe Falkenberg


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