- GfK
German consumers are getting less confident about the economy in the next year, suggesting that recession in other Eurozone countries will hit the growth of Europe's largest economy as well. The forward-looking GfK consumer sentiment index dropped to 5.6 in January, down from a revised 5.8 in December, missing economists' forecast for 5.9 points. At the same time, the gauge of economic expectations fell to minus 17.9 in December, compared to minus 14.6 in the previous month. Earlier this week, the Bundesbank lowered its growth forecast, saying German economy will contract in the fourth quarter of 2012 and stagnate in the first three months next year.
"German consumers are expecting the economy to go through a difficult phase in the coming months," GfK said in an e- mailed statement. "As well as a stable labor market, it's important that a lasting solution to the European debt crisis is found to ease consumers' uncertainty."
"As a result of the international economic headwind, German consumers are feeling uncertain at the end of the year," said the Nuremberg-based group while explaining a second monthly drop in its index.
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