Weak Consumer Sentiment in Germany Casts Some Doubt on a Strong Recovery

A survey showed that consumer sentiment in Germany deteriorated towards September, casting some doubt on whether household spending in Europe’s largest economy is strong enough to lead a robust recovery from the Covid-19 crisis.

The GFK said its consumer sentiment index, which is based on a survey of nearly 2,000 Germans, fell to -1.8 as September approached a revised level of -0.2 the previous month.

The drop comes after three straight increases from June through August. The reading missed Reuters’ forecast, for a rise to 1.2.