German consumers are growing increasingly skeptical about the country's economic prospects, a study from the GfK institute reveals today.
The institute in its August report found that regarding Germany's economic future 'confidence is losing more and more ground,' notably as Germans believe that the pace of reform adopted by the government of Chancellor Angela Merkel is 'unsatisfactory'.
But the report noted that consumers are nonetheless showing 'a strong propensity to make purchases,' which it attributed to the planned three-percentage-point rise in the country's value-added tax from January 1.
The institute's consumption index for August fell slightly to 8.5 and is seen as coming to 8.6 points in September.
The government has lately displayed pronounced optimism, citing a sharp hike in growth in the second quarter, a gradual fall in unemployment and an improvement in the state of public finances.
But the GfK survey found that 'the good news on the labour front has not yet had an impact on the morale of German consumers.'
It added that signs now suggested that 'the household consumption sentiment is not going to truly improve this year.'
