The 9.9 reading for the consumer sentiment indicator going into September was also below the Reuters consensus forecast of 10.1.
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“Despite the deal reached with Greece over its debt, the downward trend in economic expectations has intensified with the third consecutive monthly decline”. The corresponding index dropped 1.8 points to 16.6.
The additional business cycle expectations index reflects the assessment of those questioned of the general economic situation in the next 12 months.
It remains to be seen whether the weakening of the Chinese economy, a major export market for some German industrial companies, will affect Germany.
The income expectations indicator slid 5.1 points to 53.5. Buerkle said that consumers continue to expect their personal financial situation to improve.
“After all, the German labor market is very robust and employment high, leaving room for decent wage increases in the months ahead”.
The willingness to buy sub-index declined for the third time in a row.
At the same time, consumer enthusiasm is increasingly stronger in retail.
However, despite the decline, the index remained at a high level, which suggested that private consumption will continue to be one of the main drivers of the Eurozone’s biggest economy.
Elsewhere, flash data from Markit today showed that the German private sector grew at the fastest pace in four months in August. Meanwhile, activity growth at service providers was little-changed from July.
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Many respondents said they would refrain from making big-ticket purchases right now, fearing their incomes might not rise as high as expected earlier in the year.
