Refugee Crisis Dampens German Consumer Confidence: Survey

Migrants Absconding

Europe’s refugee crisis is dampening consumer confidence in Germany as shoppers worry about the economic consequences of the huge influx of migrants, a poll found on Wednesday.

“The good mood seen among consumers in recent months is slowly waning,” market research company GfK said in a statement.

“As last month, economic expectations have fallen sharply, apparently under the influence of the ongoing refugee crisis,” it said.

By contrast, Germans’ willingness to spend slipped only slightly and income expectations were steady.

Looking to November, GfK’s headline household confidence index was forecast to slip to 9.4 points from 9.6 points in October.

“That will be the third monthly decline in a row and brings the barometer to the lowest level since February,” GfK said.

“But the level nevertheless remains satisfactory. The current very favourable trend in the retail sector is a substantial pillar of support for consumer sentiment,” it said.