Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

German consumer morale brightens heading into October - GfK

EconomySep 28, 2021 07:06
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Shoppers wear mask and fill Cologne's main shopping street Hohe Strasse (High Street) in Cologne, Germany, 12, December, 2020. REUTERS/Wolfgang Rattay/File Photo

BERLIN (Reuters) - The mood among German consumers brightened unexpectedly heading into October to reach its highest level in a year and a half, a survey showed on Tuesday, in a sign that households continue to support the recovery in Europe's largest economy.

The GfK institute said its consumer sentiment index, based on a survey of around 2,000 Germans, rose to 0.3 points for October, from a revised -1.1 points a month earlier. The reading compared with a Reuters forecast for -1.6.

Both economic and income expectations improved significantly while the propensity to buy rose slightly, GfK said.

Consumers became more optimistic in light of falling coronavirus infections that the fourth wave in the pandemic could be less pronounced than many feared, the survey showed.

"That is why many consumers can once again see scope for restrictions to be eased further," GfK consumer expert Rolf Buerkl said in a statement.

But Buerkl cautioned that even if consumer sentiment had almost reached its pre-crisis level, it was still too early for talk of a fundamental trend shift.

"Instead, we must first see how the infection situation develops in the winter months and if new restrictions become necessary," he added.

Consumer spending drove a 1.6% economic expansion in Germany in the second quarter, providing support for an economy which is struggling with supply bottlenecks in manufacturing.

The German government expects the economy to pick up steam in the third quarter but business activity is likely to cool again in the final three months of the year.

OCT 2021 SEPT 2021 OCT 2020

Consumer climate 0.3 -1.1 -1.7

Consumer climate components SEPT 2021 AUG 2021 SEPT 2020

- willingness to buy 13.4 10.3 38.4

- income expectations 37.4 30.5 16.1

- business cycle expectations 48.5 40.8 24.1

NOTE - The survey period was from Sept. 2-13, 2021.

The consumer climate indicator forecasts the development of real private consumption in the following month.

An indicator reading above zero signals year-on-year growth in private consumption. A value below zero indicates a drop compared with the same period a year ago.

According to GfK, a one-point change in the indicator corresponds to a year-on-year change of 0.1% in private consumption.

The "willingness to buy" indicator represents the balance between positive and negative responses to the question: "Do you think now is a good time to buy major items?"

The income expectations sub-index reflects expectations about the development of household finances in the coming 12 months.

The additional business cycle expectations index reflects the assessment of those questioned of the general economic situation in the next 12 months.

((FOR BACKGROUND AND HISTORICAL DATA, DOUBLE-CLICK ON))

German consumer morale brightens heading into October - GfK
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email