German consumer confidence
rebounds.
by MEDIA CONTACT RESOURCES, INC.
German consumer confidence has turned around.
On March 28, 2007, the GfK Group (Nuremberg) gave itself a well
deserved pat on the back for its forecast that by the end of the first
quarter 2007, consumer confidence in Germany would reverse its decline.
GfK said, "The trigger for this was the revival in the
consumer propensity to buy which, coupled with the improvement in the
outlook for income, stabilized economic expectations at a very high
level."
Confidence for April 2007 is forecast at 4.4 points, compared with
4.3 points for March 2007.
At the beginning of 2007, a consensus developed that impact of the
increased Value Added Tax (VAT), which took effect on January 1, 2007,
would at first cause consumer confidence to decline because of
inflationary fears. GfK has maintained all along that this pessimism
would not persist very far into 2007.
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