CoinWorld News, macroeconomist Klaus Vestson said in a report that, amid the Iran war pushing energy prices sharply higher, Germany’s GfK consumer confidence index has followed the recent slide in the IFO and PMI business surveys. In May, the overall index fell from -28.1 to -33.3, the lowest level since January 2023. Vestson said the data signals that recent consumer spending will contract. He expects consumer spending to decline by 0.2% quarter-on-quarter in the second quarter, with zero growth in the first quarter, and growth of 0.2% in the third and fourth quarters. Consumption this year is expected to rise by only 0.5%, a sharp slowdown from the 1.7% increase projected for 2025.

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