German Consumer Confidence May Soften

Germany’s consumer confidence is set to weaken in March, survey data from the market research group GfK showed Wednesday. The forward-looking consumer sentiment index dropped 0.2 points to 10.8 in March. The score was below the expected 10.9 points. The political turbulence surrounding the formation of a stable, viable government in Berlin may have unsettled consumers, resulting in the atmosphere in February losing the gains it made in the previous month, GfK said, RTT News reported. Both economic and income expectations, as well as propensity to buy weakened in February. The economic expectations index slid 8.8 points to 45.6 in February. Despite losses in this month, consumers continue to view economic prospects with optimism, GfK said. After rising for two straight months, the income expectations indicator dropped moderately to 53.8. At the same time, propensity to buy declined 4.1 points to 56.3 in February. The indicator was influenced by the decreases in economic and income expectations.