The survey from
GfK showed on Wednesday the consumer confidence in Germany is seen to improve
marginally in October, as both economic and income expectations are on the
rise, while propensity to buy has taken a hit.
According to
the report, GfK’s consumer confidence index registered a 0.1-point drop in the
consumer climate forecast for October to -1.6 points from a revised -1.7 in September
(originally -1.8).
Economists had
forecast the indicator to improve to -1.
Indicator of consumer
income expectations climbed 3.3 points to 16.1 points, making a significant
contribution to the stable development of the consumer climate. In addition, the economic
expectations index surged 12.4 points to 24.1 points, supported by a stable
labor market and the falling number of short-time workers. Meanwhile, the gauge
for the propensity to buy declined by 5.3 points to 38.4 after four consecutive
rises.
"Despite
rising infection figures and the increasing fear of tighter restrictions caused
by the pandemic, the consumer climate has stabilized. The extensive support
packages for business and consumers are clearly suitable measures to help
Germany emerge from the worst recession since the war," Rolf Bürkl, GfK
consumer expert, noted. "The further course of the infection rate in
Germany and the situation in the labor market will decide whether the previous
month's downturn remains a flash in the pan and whether consumer mood is able
to recover in the coming months."
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