German morale slides as sovereign debt fears weigh

GERMAN consumer confidence slipped for the third consecutive month in May, it emerged yesterday.

The highly-regarded GfK indicator fell to 5.5 from 5.7 in April.

Sentiment has been hit by the ongoing sovereign debt crisis in Greece, as well as high energy prices.

“This shows that commodity-driven inflation is probably the main threat for the German economy,” said ING’s Carsten Brzeski.

“Private consumption has not yet taken over the baton from exports and investments as a growth driver,” he added.