Germany: consumer confidence seen to improve marginally in October - GfK

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."