26.09.2014 - Consumer confidence in Germany decreased
Today have been published data on the index of consumer confidence in Germany. It is expected that the rate in October will worsen to 8.3 compared to 8.6 in September. The main reason for the reduction of the indicator is geopolitical crisis associated with the tense situation in the regions of the world such as the Middle East, Libya and Ukraine. It is worth noting the weakness of economic growth in the euro area as a whole. Despite this, unemployment in Germany is near historic lows, personal incomes and company’s profits grow and the cost of borrowing is at historic lows. We predict a decrease of the German stock index in the medium term due to the weakness of the euro area economy and a slowdown in the growth of industry in China.