Germany’s consumer confidence is set to remain stable in November, despite Brexit and trade disputes weighing on economic and income expectations.
The forward-looking consumer sentiment index came in at 10.6 in November, the same as seen in October, survey data from the market research group GfK showed Friday. The score was forecast to drop to 10.5.
While the economic and income expectations suffered losses, the propensity to buy rose again in October, the Nuremberg-based GfK institute said.
After rising for two straight months, the economic expectations index dropped 8.1 points to 19.0 in October. The next few months will reveal whether this means that the recovery is at an end again or whether it is just a temporary weakness, GfK said.
Consumers continue to assume that the German economy will remain on a solid growth path both this year and next, the agency added.
Unresolved trade conflict between the USA and the EU, escalating dispute with China and the possibility of a hard Brexit are unlikely to inspire consumer optimism.
In the wake of weaker economic expectations, the income expectations also suffered losses in October. The corresponding index came in at 54.4 versus 57.9 in September.
The excellent labor market conditions continue to create a positive mood among workers with regard to the development of their earnings.
Meanwhile, the propensity to buy indicator rose to 55.9 points, confirming its strong level. As a result, consumers remain in an exceptional spending mood, GfK added.
The survey was conducted among 2,000 consumers between October 5 and 19 on behalf of the European Commission.