German consumer confidence outlook slips slightly

Consumer confidence in Germany is slipping, as people are unsure about the economic recovery in the region and their personal income, a survey said on Tuesday.

The Gfk consumer sentiment index is now expecting 5.4 reading in January, after 5.5 in December. However, the level still remains high, as most people believe that the German economy is on a clear growth path.

Germany is one of the few regions in the European Union that has been seeing a good economic recovery. The region has seen strong job growth, manufacturing growth and production in 2010, while many of the other countries in the EU are struggling with massive debt.

Economic expectations fell in December, breaking a 6-month streak, at 58.8 during the month, down from 65.8 in November.

However, income expectations and propensity to buy in Germany remained quite high, the survey said.

More people expect prices to go up, particularly of gas and heating oil.

However, there are no grounds for serious concerns about inflation, as the general inflation rate is likely to remain below two percent in the coming year and hence there will be no need for the European Central Bank to intervene to stabilize prices, the survey said.