BERLIN: German consumers are slightly more pessimistic heading into January, a key survey found Friday, as fears mount that a global slowdown could trigger job losses in the export-driven powerhouse.
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The GfK institute’s forward-looking consumer confidence barometer dipped to 9.6 points, down from 9.7 for December, the pollster said in a statement.
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The survey of some 2,000 people found that respondents were more downbeat than last month about Germany’s economic prospects, while income expectations plummeted to a six-year low.
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The ongoing US-China and US-EU trade tensions are hanging over Germany “like the sword of Damocles”, GfK said.
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“On top of that, global growth is weakening. This has fuelled fears of job losses in export-oriented industries and among their suppliers.”
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After years of robust economic expansion, the German government is expecting just 0.5 per cent growth this year, and one per cent in 2020.
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The crucial German car industry is particularly vulnerable to external threats, and major automakers like Volkswagen and Daimler have recently announced thousands of job cuts.
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Despite the darkening clouds, the GfK survey noted that Germans were still in the mood to shop, buoyed by high wages and low interest rates that discourage saving.
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Respondents reported that they were more likely than last month to splash out on big purchases.
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Consumer spending remains “a pillar of strength” in Germany despite “an increasingly stormy economic environment”, GfK said.
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