German consumer sentiment expected to drop to new record low in September

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German consumer sentiment expected to drop to new record low in September
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GfK's forward-looking consumer-sentiment index forecasts confidence declining to minus 36.5 in September. from a revised figure of minus 30.9 in August.

Consumer confidence in Germany is set to fall in September to an all-time low, as propensity to save increases amid fears of higher energy costs.

“The fear of significantly higher energy costs in the coming months is forcing many households to take precautions and put money aside for future energy bills,” GfK’s consumer expert Rolf Buerkl said. He explained that this is dampening consumer sentiment, as in return there are fewer financial resources available for consumption elsewhere.

The Germans’ propensity to save increased by a whopping 17.6 points in August, climbing to 3.5 points, the highest value in more than eleven years, GfK said.

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