Healthy Consumer Climate Shows Stability

27/07/2007 08:11


NUREMBERG, Germany, July 27 /PRNewswire/ --
- Findings of the German GfK Consumer Climate Survey for July 2007

The consumer climate showed stability at a strong level in July. Income expectations and buying propensity almost matched the record figures of the prior month. Conversely, the economic outlook proved slightly more cautious this summer. Following the revised 8.5 points in July, the consumer climate forecast for August is 8.7 points.

Economic outlook: euphoria ebbing slightly

The marked economic euphoria displayed by Germans, which resulted in an all-time high in the economic outlook indicator in May this year, lost some of its pace in July. Compared with the prior month, the indicator was down by a good 4 points and now stands at 64.8 points. Precisely one year earlier, the indicator reflecting economic sentiment was a considerable 49 points lower.

Income expectations: consistently stable

In July, the income expectations of German consumers remained almost as high as before. The indicator decreased by a negligible 0.8 points and now amounts to 27.9 points. Year-on-year, an increase of almost 32 points is evident.

Buying propensity: practically unchanged

Following a marked increase of some 13 points in the prior month, the buying propensity remained practically unchanged in July. A minimal decrease of 0.1 points was recorded. This signals that the propensity to buy has firmly stabilized in the positive range. With an indicator value of 9.0 points, the buying propensity continues to outstrip its long-term average of 0 points.

Consumer climate: short break

The upward trend in the consumer climate lost some pace in midsummer this year. This is mainly attributable to income expectations, which have stopped rising overall. Following the revised 8.5 points in July, the indicator forecast for August is 8.7 points.

Marion Eisenblätter
Tel. +49-(0)911-395-2645
marion.eisenblaetter@gfk.com

Contacts: Marion Eisenblätter, Tel. +49-(0)911-395-2645, marion.eisenblaetter@gfk.com