German Consumers Turn More Pessimistic: GfK Consumer Climate Index Slides Lower

German consumers’ sentiment has declined the lowest in three years as consumers turn increasingly pessimistic about the outlook for the Eurozone’s largest economy. Germany’s GfK consumer climate index slid to 9.6 for November, coming in lower than the previous month’s reading of 9.9 and lower than economists’ forecast which was for a reading of 9.8.

Global trade tensions and ongoing uncertainties about Brexit have been aggravating the risks of a recession in the German economy. The German economy is an export-oriented one, with manufacturing being one of its most powerful contributors to the nation’s as well as overall Eurozone’s GDP.

So far, the economy has been supported by robust domestic consumption even as exports and trade suffered. However, consumption has been declining as a result of job losses in the auto and financial services industries recently, turning into a major cause for concern.