german consumer confidence holds up despite crisis
Last Updated : GMT 18:26:54
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German consumer confidence holds up despite crisis

Arab Today, arab today

Arab Today, arab today German consumer confidence holds up despite crisis

Berlin - AFP

Consumer confidence in Germany is holding up despite growing concerns that Europe\'s top economy will be hit by the debt crisis, according to a poll. Market research company GfK said its household confidence index was forecast to edge slightly higher to 5.9 points in August from 5.8 points for July, a statement said. \"The increasing economic risks have not yet had an impact on the indicator,\" said the institute. \"Private consumption is therefore increasingly an essential support for the German economy,\" GfK added. The headline consumer confidence reading is based on responses from around 2,000 households on their expectations about pay and the economy as a whole in the coming months, as well as their willingness to spend money. The index is a ray of light after other key confidence indicators pointed to darkening economic prospect for Germany. On Wednesday, the closely watched Ifo survey of business confidence dropped for the third consecutive month in July while investor sentiment as measured by the ZEW index also fell this month to its lowest level in six months. Germany has proved relatively resistant to the eurozone crisis so far, with exports buoyant and manufacturing continuing to hum. However, signs have grown recently that even the strongest economy in Europe cannot be immune forever, with ratings agency Moody\'s threatening to cut its cherished top credit rating.

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