German consumer confidence is expected to dip slightly in August, a survey said Thursday, as shoppers warily eye an unfolding trade war between the European Union and the United States.
Market research firm GfK said its forward-looking poll of around 2,000 people slipped to 10.6, or 0.1 points lower than in July.
‘German consumers are becoming more and more convinced that international crises will slow German growth,’ the pollsters said in a statement.
‘Especially the escalating trade conflict with the US could impact export-nation Germany.’
But even as consumers fret over the economic outlook, they remain optimistic about their own income prospects and spending plans thanks to a solid labour market and low interest rates.
‘Despite the geopolitical uncertainty, Germans remain in the mood to shop,’ GfK noted.
Trade tensions have risen since President Donald Trump hit steel and aluminium imports to the US with hefty tariffs and threatened to do the same to European cars, after the European Union retaliated with border taxes on American goods.
Germany’s mighty auto industry would be among those worst hit by the potential car tariffs.
Trump is also locked in a similar tit-for-tat row with economic giant China, fuelling fears of a global trade war.