Germany: Consumer confidence holds steady in October
September 25, 2012
The forward-looking GfK consumer confidence indicator for October remained stable at September's 5.9 points, which matched market expectations. The reading represents the highest level seen in the index since March, as rising concerns among consumers that the economy would enter into recession appear to be fading. While the overall consumer climate indicator refers to October, its sub-indicators refer to September. According to the GfK, the economic expectations sub-index rose over the previous month, marking the first improvement after three consecutive declines, suggesting that consumers are less worried that the economy would slip into recession. Moreover, consumers' willingness to buy was stable over the previous month, and remained at healthy levels. Meanwhile, despite the slight improvement in economic expectations, households' income expectations dropped noticeably in September.
Author: Ricardo Aceves, Senior Economist