German consumers defy global economic gloom

Berlin- German consumers once again defied the global economic gloom with a key sentiment indicator released Monday coming in unchanged.

The GfK marketing group's forward-looking German consumer confidence index remained unchanged at 2.1 in January.

But while the index's component measuring the consumers' view of the economic outlook worsened their willingness to buy rose slightly.

Based on a survey of about 2000 consumers in Europe's biggest economy, the release of the GfK indicator follows a steep fall in the price of oil and a consequent sharp drop in inflation.

"Consumer propensity to buy benefited from the reduced rate of inflation to end 2008 slightly higher," the GfK said releasing the survey.

The release of the GfK survey also comes amid signs that German retailers have enjoyed healthy sales in the run-up to Christmas with the nation's retail traders' association reporting a rise in sales compared to the Christmas period last year.

However, German business confidence plummeted in December to a low last seen during the 1980s oil crisis, a survey released last week with analysts continuing to revise down their 2009 economic growth outlooks for the country.

In the meantime, the German car industry is facing a major crisis as auto sales fall dramatically around the world and in Germany. (dpa)

Latest News

Father Shoots Girl’s Laptop, Posts Video on Youtube
Apple Begins Inspection
Researchers Blame Technological Advancements For Kids’ Poor Sleeping Pattern
The Google Motorola Deal Approved By US and EU
Replace Sugary Drinks with Water to Lose Weight
NASA Scientists Develop New Space Testbed
Scientists Expecting Life at Icy Dark and Cold Regions
Mysteries Behind Milky Way Galaxy To Be Unveiled
Scientific Equation behind the Shape of Ponytail Unveiled
Cooma People Encouraged To Donate Blood
Knox Receives Less Dental Care Funding
Massive Fight in Sydney Club