A key survey found that Germans were significantly more pessimistic about the prospects for the economy than in the previous month, with the sub-index hitting a low not seen since the start of the pandemic.
The mood among German consumers has plunged to an all-time low, a key survey showed, as the fallout from the conflict in Ukraine has the country's economy bracing for a painful recession.
Nuremberg-based market researcher GfK said on Wednesday that German consumer sentiment fell to a record low of -30.6 in August down 2.9 points from July.
"In addition to concerns about disrupted supply chains, the war in Ukraine and soaring energy and food prices, there are now worries about sufficient gas supplies for businesses and households next winter," Rolf Burkl, GfK consumer expert, said.
"This is currently causing consumer sentiment to hit rock bottom,” said Burkl.
Concerns are also growing that reduced Russian gas deliveries will have a catastrophic effect in Germany this winter, potentially shutting down factories and forcing the government to impose emergency energy-saving measures.
Economic expectations dropped 6.5 points in July from a month ago to -18.2 points.
The survey of some 2,000 people also found that respondents' income expectations had dipped to a new record low, and that they were less inclined to buy big-ticket items than a month earlier.
Income expectations declined by 12.2 points in July, to -45.7 points.