German consumer confidence fell to an eight-year low in January, with rising unemployment, higher taxes, and the situation in Iraq undermining sentiment, according to a new poll The key findings of the January survey, conducted by research group GfK, show that, "in view of the weak economic situation, political controversy regarding economic, labour market and social policy in Germany, and the general uncertainty surrounding the conflict in Iraq, consumers are not confident of an economic upswing."
Germans were particularly downbeat about the economic outlook, with the survey's economic expectations index falling by nearly three points in January from December to a reading of -29.2 points. According to GfK calculations, the index has now fallen to the same low level as in the recession years of 1992-1993 and 1996-1997 "The reasons for the pessimistic outlook are obvious. A particular source of concern is the high unemployment rate, which is still rising," the report said //www.fxcentre.com