Germany Gfk consumer sentiment for November dropped to 9.6, down from 9.8, missed expectation of 9.8. Gfk noted that besides known risk factors such as the global economic downturn, trade conflicts and Brexit chaos, there are increasing reports of job losses, such as in the automotive industry and on the financial markets, for example. These events have dampened the mood of consumers again and optimism is dwindling
In particular, economic expectation indicator continued its down trend dropped -4.8 pts to -13.8. That’s the lowest level in nearly seven years since December 2012. “According to consumer estimates, the risk that Germany could slide into a recession has increased again recently. Combined with the trade conflict, the global cooling off of the economy, which will especially impact the strongly export-oriented German economy, will not leave the German economy unscathed. Consequently, several automobile manufacturers as well as their suppliers have already announced redundancies. This loss of jobs at car manufacturers will be further intensified in future by the forthcoming transition to electro-mobility. Owing to the European Central Bank’s (ECB) low-interest-rate policy, banks are experiencing increasing difficulties. As the example of Deutsche Bank shows, they are reacting with branch closures and redundancies.”
