German consumer sentiment expected to worsen in July

By Tuba Ongun

ANKARA (AA) – Consumer morale in Germany is projected to worsen in July, marking the first deterioration in nine months, according to data released on Wednesday.

Market researcher GfK is forecasting minus 25.4 points for consumer sentiment in July, down 1 point from June's downwardly revised figure of minus 24.4 points.

"The current development in consumer sentiment indicates that consumers are once again more uncertain. This is reflected in the fact that the propensity to save increased again this month," said Rolf Burkl, a consumer expert for Nuremberg-based GfK.

"Continued high inflation rates, currently at around six percent, are noticeably eroding the purchasing power of households and preventing private consumption from making a positive contribution," he added.

After eight consecutive rises, the income expectations of consumers also fell 2.4 points in June and currently stand at -10.6 points.

The propensity to buy, on the other hand, is more or less remaining stable, albeit at a very low level. The figure gained 1.5 points to -14.6.

Consumers' confidence in economy fell 8.6 points to a current value of 3.7.