German and French consumer sentiment tanks

EuroActiv Politico News

FRANKFURT – Consumer sentiment in the eurozone’s two largest economies is tumbling further amid surging inflation and growing worries over growth prospects, data released Thursday showed.

In Germany, the forward-looking GfK consumer sentiment survey, based on around 2,000 consumer interviews, projected a drop to an all-time low in July. It forecast a reading of minus 27.4 points in consumer sentiment for July, down 1.2 points from June.

“The ongoing war in Ukraine and disruptions in supply chains are causing energy and food prices in particular to skyrocket, resulting in a gloomier consumer climate than ever before”, said Rolf Bürkl, GfK’s consumer expert.

Meanwhile, the French statistics office reported consumer morale in June tumbled to its lowest since July 2013, amid rising cost pressures and overall darkening economic outlook. It marks the sixth month in a row of falling values, and at 82, it’s well below its long-term average of 100.