FXstreet.com (Barcelona) - Fast growing energy prices, plus the threat of a massive rise in the price of gas have dampened Germans' consumer sentiment for the second consecutive month, according to the latest report by the GfK institute.
The GfK consumer climate indicator for July has declined to 3.9 points, from downwardly revised 4.7 points in June. Consumers are facing an increasing loss of purchasing power on the sight of repeated announcements of ever rising prices for petrol and diesel. These fears, combined with the squeeze of the financial markets, the strength of the European currency, and the global economic slowdown have darkened considerably the Germans' assessment of the economic outlook.
The economic expectations index have declined 6 points to 7.5 points in July, the income expectations index has lost 3 points to 7.2, and the indicator measuring consumers' propensity to buy has declined 3 points, to a level of -23.7 points.