Nuremberg, Germany - Fears of a looming recession have further worried Germans, with the monthly GfK index of consumer sentiment dipping Monday to its lowest level since June 2003.
Nuremberg-based GfK, which surveys panels of consumers, forecast an August consumer climate at 2.1 on its own index scale, a marked fall from the July level of 3.6, as households took stock of gloomy financial news and rising fuel prices.
Many householders who were cheered by pay hikes earlier in the year reported fresh worries that inflation would claw back their gains. This drove GfK's separate index of income expectations down to minus 20, the lowest level since August 2004.
But a further index, reflecting interest in buying things, was only slightly down.