30.07.201903:11:00UTC+00German Consumer Sentiment Set To Fall In August

Germany's consumer confidence is set to fall in August on fears of a recession, survey data from the market research group GfK showed Tuesday.

The forward-looking consumer sentiment index came in at 9.7 in August versus 9.8 in July. This was the third decline in succession and the lowest since April 2017.

Income expectations improved in July but economic expectations and propensity to buy suffered a decline, data showed.

Gfk said the trade war with the US, ongoing Brexit discussions and the global economic slowdown continue to drive fears of a recession.

The economic expectations index declined 6.1 points to -3.7 in July. The index fell below the average zero for the first time since March 2016.

Meanwhile, income expectations recovered slightly in July, rising 5.3 points to 50.8. The level suggested that consumers are expecting to continue to see a significant increase in income in months ahead.

In contrast to income expectations, the propensity to buy declined to its lowest level since October 2015. The index dropped 7.4 points to 46.3 in July.

The research group observed that primary threat to consumer confidence is the persistently increasing fear of job losses. "Should this trend continue, consumer demand, which is currently strong, would be at risk," GfK noted.