Consumer confidence in Germany is faltering in the face of growing concern about the economic impact of the crises in Ukraine and the Middle East, a new poll found Wednesday. "The escalation of the situation in Iraq, in Israel and in eastern Ukraine, as well as the accelerating spiral of sanctions with Russia is finally having a negative effect on consumers' previously optimistic economic expectations," market research company GfK said in a statement.
"Uncertainty with regard to the outlook for the German economy has risen noticeably," the statement said. At the same time, consumers' income expectations and their willingness to spend money were still "relatively robust," GfK found. Looking ahead to next month, GfK's headline household confidence index was forecast to drop to 8.6 points in September from 8.9 points in August.
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