Shoppers' confidence collapses at record rate GERMANY

[SocalDinar]

Shoppers' confidence collapses at record rate

Confidence among German consumers fell at its fastest rate in August since records began more than 30 years ago. Instability on the international stage and fears for the future of the national economy have contributed to the sudden drop.

 

Market research firm GfK said on Wednesday that confidence went through the greatest drop since they began conducting their survey in 1980, against a backdrop of worries about the confrontation with Russia over eastern Ukraine and the conflicts in Iraq and Gaza.

With no solutions in sight for the world's crisis points, and particularly no prospect of relations with Russia getting back to normal any time soon, people on the street are anticipating harder economic times.

The indicator dropped by 35.5 points, plummeting to 10.4 points, meaning two-thirds of the improvement in confidence that had been achieved since the previous low point of August 2013 was wiped out at a stroke in the last month.

"A decline of this magnitude in just one month has not been recorded since the survey began in 1980," GfK reported.

"Consumers are expecting the economy to shift down a gear or two at least," the firm said in a statement.

"Given that no long-term solutions appear to be on the cards yet for any of the crises, uncertainty is rising in the population on the potential consequences for the German economy.

"In particular, the sanctions against Russia, which are already significantly impacting exports, could become a real risk for the German economy."

The fall in confidence comes in the wake of poor results for the second quarter of 2014 released by the Federal Statistics Office. GDP declined by 0.2 percent in the three months to June.

Business confidence is also at its lowest level since July 2013, according to the Ifo Business Climate Index.

 

http://www.thelocal.de/20140827/russia-and-iraq-fears-hit-consumer-confidence

[Hooter]

They should have their central bank buy trillions in government bonds, rack up trillions in national debt to fund massive government programs and grants, and give all the banks as much money as they want at zero % interest. That will take care of all their problems and give the people great confidence in the economy.