The euro zone debt crisis and higher energy prices have sapped German consumer sentiment, resulting in a third consecutive drop in the GfK index, the research institute said today.
On the basis of a survey of 2,000 individuals done this month, the forecast index for June dropped to 5.5 points from 5.7 points in the reading for May. A deterioration of the Greek debt crisis and persistently high energy prices have cooled optimism among consumers in Europe's biggest economy, a GfK statement said.
Boosts from falling unemployment and solid economic growth have drifted to the background for now in the view of those surveyed, it added.
A breakdown of the results showed that shopper's propensity to make large purchases had declined and that dogged inflation had raised fears related to personal revenues.
Consumers were still relatively upbeat with respect to the country's economic prospects however, though that indicator declined slightly as well. Economy Minister Philipp Roesler estimated earlier this week that business activity would expand by 'at least' 2.6% this year.
The GfK poll stood in contrast to one published yesterday by the Ifo research institute, which found business leaders generally upbeat about the situation at present, particularly in the retail sector.
Data released by the national statistics office showed that consumption gained 0.4% in the first quarter from the previous three-month period. That was in large part the result of falling unemployment.
