German consumer confidence is set to improve in October despite political turbulence, survey data from market research group GfK showed Thursday.
The forward-looking consumer sentiment index rose 0.1 points to 10.6 in September. The score was forecast to remain unchanged at 10.5 points.
Both economic and income expectations strengthened in September, whilst propensity to buy dropped slightly.
The economic expectations index climbed 4.9 to 27.1 in September. The market research group said neither the trade dispute between the EU and the USA nor the threat of a hard Brexit seem to be restricting economic optimism long-term.
The index for income expectations rose 5.3 points to 57.9 in September, the highest score seen so far this year. The persistence of an excellent labor market provided good conditions for solid income growth.
Although inflation increased recently, consumers still expect noticeable income increases in real terms, GfK noted.
The propensity to buy indicator fell 2.3 points to 52.9 points in September. GfK said Germans remain in the mood to spend despite the small decrease.