Germany: Slight pick-up in consumer confidence expected in October
The forward-looking consumer confidence indicator for October released by the GfK Group increased slightly to 10.6 points, up from September’s 10.5 points, with consumers unmoved by recent political uncertainty. Backward-looking indicators for September, which were released simultaneously, showed an overall positive trend.
Economics expectations improved strongly in September, despite lingering uncertainty surrounding Brexit and the trade dispute between the European Union and the United States. Income expectations also improved, likely underpinned by low unemployment and resilient growth in wages and pensions. Furthermore, consumers’ propensity to buy remained robust in September despite moderating from the previous month. Propensity to buy has also benefitted from the positive labor market developments.