Home / Knowledge / News / Textiles / Brexit halts upward trend in German consumer climate
Brexit halts upward trend in German consumer climate
28
Jul '16
Courtesy: GFK
Courtesy: GFK
The consumer climate in Germany weakened slightly in July. Also as a result of Brexit in the UK, the Consumer Climate overall indicator forecasts 10 points for August, down from 10.1 points in July. Economic and income expectations suffered losses, while propensity to buy increased slightly again, according to Germany's largest market research institute, GFK.

German consumers, too, have evidently been affected by the Britain's decision to leave the EU. This is signaled by the decline of both economic and income expectations. In contrast, propensity to buy was able to exceed its already very high level.

For the first time after three successive increases, the economic expectations of German consumers have suffered a setback. The indicator lost 8.6 points in July and is now at 9.4 points, noticeably weakening the positive trend seen over the last few months, according to the GfK Consumer Climate Study for Germany for July 2016.

Consumers do not seem to believe that the German economy can continue to grow in the coming months at quite such a significant pace as in previous months. They put this down to the UK's decision to leave the EU. This is also shown by the results of an additional survey carried out this month in addition to the consumer climate study. GfK asked citizens how they thought Brexit would affect the economy and labour market in Germany. Over half of those surveyed (51 per cent) said they believed it would have negative effects on the German economy, while around 40 per cent dismissed such concerns.

However, they were less worried about jobs in Germany in general. But around 40 per cent of consumers believe the referendum in the UK will also affect jobs in Germany. However, in contrast to the consequences for the economy, optimists are in the majority when it comes to the labour market, with 52 per cent not fearing any disadvantages for employment in general.

In addition to the topic of Brexit, the economic outlook for the coming months will also be determined by how the tense security situation/increased terror threat affects the mood of consumers.

The constant fluctuations in income expectations, which began in November 2015, also continued into July. However, in contrast to previous months, this time the decline was somewhat more pronounced at minus 9.9 points, compared with June's increase of plus 7.8 points.

At 49.7 points, the indicator stands just under the 50-point mark. In the face of the weaker economic outlook, the income indicator also suffered losses. The Germans still remain very optimistic about how their income will develop, however. And rightly so – against the background of the very stable job situation and absence of inflation, employees have considerable purchasing power through the last wage negotiations. Furthermore, statutory pensions in Germany increased markedly in July.

Must ReadView All

Textiles | On 27th Sep 2016

CBEC unveils draft rules for registration under GST

The Central Board of Excise and Customs (CBEC) has unveiled draft...

Textiles | On 27th Sep 2016

Pak spinner Sajjad Textile halts operation

In a filing with the stock exchange, Pakistan yarn spinner Sajjad...

Courtesy: BCG

Fashion | On 27th Sep 2016

Luxury brands need to shift in digital direction: BCG

A new research report from BCG indicates that almost six out of ten...

Interviews View All

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Kerem Durdag
Biovation II LLC

Kerem Durdag, CEO, Biovation II LLC, provides an insight into future...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Ritu Kumar
Label Ritu Kumar

‘Classics will return’ "There are a lot of people wearing western clothes ...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
September 2016

September 2016

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


Advanced Search