GFK : German consumers less troubled by trade war fears … AFP
GFK : German consumers less troubled by trade war fears
Confidence among German consumers should resist fears of a trade war between Washington and Brussels in July, a survey published Thursday showed.
A forward-looking monthly barometer by pollsters GfK stood at 10.7 points for July, the same level as this month and 0.1 points lower than in May.
“Expectations for the economic outlook above all have been troubled by the US President’s trade policy towards the European Union,” GfK said in a statement.
Most recently, the EU has reacted with targeted border taxes on some American products in retaliation for President Donald Trump’s tariffs on steel and aluminium imports.
Although Trump has warned further levies on car imports — a far more vital sector — could follow, “income expectations and inclination to make big purchases both increased slightly in June,” the pollsters found.
“Continuing excellent employment prospects are clearly pushing negative global economic influences into the background,” GfK said, as Germans enjoy higher pensions and salaries and historic low levels of unemployment.
But there are signs that Europe’s largest economy has lost momentum since the unexpectedly strong growth seen late last year, with some banks, think-tanks and other institutions lowering their forecasts for its
expansion in 2018.