2023-10-01 15:00:21
The confidence of German consumers has registered a new deterioration of nine tenths for the month of October, according to the index prepared by GfKwhich stood at -26.5 points, compared to -25.6 the previous month.
According to the data, the consumer confidence it fell again slightly in September. Although economic expectations increased slightly and both income expectations and the propensity to buy registered minimal growth, the propensity to save increased “significantly”, causing a further decline in consumer confidence.
Specifically, the propensity to save rose to 8 points, its highest level since April 2011, which led to consumer sentiment falling slightly for the second consecutive time.
“This means that the chances of a recovery in consumer sentiment this year have probably fallen to zero,” said Rolf Bürkl, consumer expert at GfK.
«The reasons for this are a persistently high inflation rate due to sharp increases in food and energy prices. Consequently, private consumption will not be able to contribute positively to general economic development this year,” he stressed.
After the falls of the previous month, income expectations stabilized in September. According to GfK, the high inflation rate of 6.1% deteriorates the purchasing power of households, preventing a sustained recovery in income expectations.
«In particular, the sharp rise in food prices puts considerable pressure on households. Furthermore, energy prices, such as gas and heating oil, have risen slightly again in recent times,” says GfK.
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