CHRISTMAS'S ECONOMIC IMPACT LEAVES GERMAN CONSUMERS COLD / FINDINGS OF THE GFK CONSUMER CLIMATE SURVEY IN DECEMBER 2003

12/30/2003 5:06 AM EST

Christmas's economic impact leaves German consumers cold

Findings of the GfK consumer climate survey in December 2003

Five percent less Christmas business than in the previous year - the
consumer's mood was not as up in December as trade had been hoping for
up until the end of November. GfK's consumer climate study confirmed
this in December. In the last month of the year 2003 the more positive
mood of the consumer in November had again already come to an end.

Whilst financial analysts (ZEW) and companies (ifo) stand by their
positive assessment of the economic development at the year end, it must
be said that the buoyant mood of November did not spill over into
December to quite the same extent, though can be considered comparable.
However, personal expectations on the subject of personal income
developments have yet again been clouded. Moreover, their propensity to
buy, which had clearly increased in November, dropped again to October's
level.

However, it can be assumed that the uncertainty of the German consumer
regarding future tax burdens and relief also played a part in the
stagnation of the consumer climate. Now that the Federal Government and
the opposition have managed to reach a decision regarding the tax
reform, the prospect has improved of there being a slight upward trend
after a month of standstill. However, a fundamental and continuing
improvement is only to be expected if there are more positive signs from
the job market.


Further information:
Dr. Ulrike Schoeneberg, Tel.: +49 911 395 2645

Complete press release: www.gfk.com