Consumer sentiments level in German economy has not changed, Reuters reports with the reference to market research group GfK. However, concerns about trade conflict between Europe and the US put doubts on future development of the largest economy in Europe.

Private consumption has become one of the main driving factors for economic development of Germany in recent years. It was supported by high employment, wage growth that exceeded inflation and low borrowing costs.

GfK informed that consumer sentiment index in June stayed at level of 10,7 poitns, while it was slipping in the previous two months. According to experts opinion, trade conflict between US and EU is intensifying and will influence German consumers’ mood.

Economic expectations index dropped by 14,1 to 23,3, lowest level in more than a year.

US President threatens to apply tariffs to auto imports from EU. This is the sector where Germany usually dominated.

Companies’ leaders are afraid that the same level of confrontation between Washington and Beijing will also harm German economy that relies on these two countries in its development.

However, so far it does not impact consumer sentiments too much. Index measuring consumers’ willingness to buy as well as index of income expectations both rose in June.