OPINION
Market Rating Before FOMC MeetingJan 31
German Consumer Confidence hit the lowest level of all times
According to GfK institute, Consumer confidence in Germany was registered as minus 27.4, slightly above the forecasts of minus 27.6 in June. It was the lowest level since 1991, when the data first started to be released.
In GfK's report, it was stated that in the context of the decline in economic and income expectations, the purchasing component decreased by 2.6 points to minus 13.7. It was emphasized in the report that income expectations were the lowest in nearly 20 years with minus 33.5.
While it was noted that the risk of recession in the economy decreased by 2.4 to minus 11.7, it was also stated that this risk was at 70 the same period last year. It was also announced that consumer sentiment reached an all-time low due to the ongoing war in Ukraine and disruptions in supply chains. In particular, it was reported in the report that these caused the rapid rise in energy and food prices.
War and supply chain problems were hindering production in Germany. And it was also pointed out that there is a risk of collapse in private consumption, which is an important factor in growth, due to high inflation. In addition, it was warned that the excessively tight monetary policy of the European Central Bank (ECB) could drag the already struggling German economy into recession.
In GfK's report, it was stated that in the context of the decline in economic and income expectations, the purchasing component decreased by 2.6 points to minus 13.7. It was emphasized in the report that income expectations were the lowest in nearly 20 years with minus 33.5.
While it was noted that the risk of recession in the economy decreased by 2.4 to minus 11.7, it was also stated that this risk was at 70 the same period last year. It was also announced that consumer sentiment reached an all-time low due to the ongoing war in Ukraine and disruptions in supply chains. In particular, it was reported in the report that these caused the rapid rise in energy and food prices.
War and supply chain problems were hindering production in Germany. And it was also pointed out that there is a risk of collapse in private consumption, which is an important factor in growth, due to high inflation. In addition, it was warned that the excessively tight monetary policy of the European Central Bank (ECB) could drag the already struggling German economy into recession.
