Consumer confidence is decisive for keeping the macro economics humming at a time of crisis. Especially when the crisis is looming for years and won't go away.
Unlike the forces of nature, those of finance enjoy the atmosphere of a tense and stormy status quo. Detente would bring more movement, more traffic, hence more pollution -- a good excuse to rob the average citizen at the gas station and to cram the shuttle trains with workers. For those having to drive a distance to the workplace, sooner or later, if not already, the Autobahn can't be an option any more because one can't spend too much of a wage on fuel.
AFP informs that "...consumers' income expectations had taken a hit from high petrol and diesel prices, as well as uncertainty over the outcome of current wage negotiations, GfK found."
"Higher energy and particularly fuel prices are increasingly making German consumers anxious," said ING Belgium economist Carsten Brzeski.
"Even if fuel prices only account for roughly five percent of consumer spending, the recent spike in fuel prices to new record highs has clearly dented confidence.
"The negative impact on consumers' wallets combined with the psychological effect of losing one's money at the gas station, remains the main threat for German domestic demand," Brzeski said.
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