- Rolf Buerkl, GfK analyst
Even though German consumers remained optimistic, they voiced concerns about the country's economic situation due to uncertainty about Greece's financial stability. According to the GfK research group, the forward-looking consumer confidence index remained flat at 10.1 points for August from July. However, the poll of 2,000 consumers revealed a significant decline in economic expectations, which decreased by 6.5 points this month and have lost almost 20 points in two months. Moreover, the GfK survey showed Germans felt more upbeat about their future income than at any point since Germany reunified in 1990, in light of high employment and strong pay hikes. Shoppers, nonetheless, were reluctant to make purchases, which GfK assumed could be due to waning optimism about the overall economic outlook.
At the same time, Spanish retailers saw an accelerated turnover, with sales rising at a faster pace, the National Statistics Institute reported. Retail businesses posted an annual 3.8% growth in June, compared with the 1.8% increase in the prior month. Meanwhile, the adjusted figure climbed 2.3% in annual terms, following the 3.1% growth reported in May. Spanish shoppers may be willing to dig into their wallets in line with the gradually improving labour market. Unemployment numbers are gradually declining in Spain, although the country still has the second highest jobless rate in the euro area - behind Greece.
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