German consumer climate for October stabilizes: GfK

Source: Xinhua| 2020-09-23 19:19:33|Editor: huaxia

BERLIN, Sept. 23 (Xinhua) -- German consumer climate for October was almost unchanged after a "clear downturn" in the previous month, according to the monthly consumer sentiment published by market research institute GfK on Wednesday.

The GfK index for October stood at minus 1.6 points, up 0.1 points from the September forecast, with individual mood indicators showing "inconsistent development."

"Despite rising infection figures and the increasing fear of tightened restrictions caused by the pandemic, the consumer climate has stabilized," said Rolf Buerkl, GfK consumer expert in a statement.

Income expectations of German consumers made a "significant contribution" to the stable development of the consumer climate, according to GfK. The index for income expectations gained 3.3 points compared to the previous month and climbed to 16.1 points.

Solid figures from the German labor market where higher COVID-19 infections did not cause a further rise in unemployment also contributed positively. The number of employees on short-time work in Germany also fell sharply, adding to the "stable development of private households' income expectations."

While propensity to buy had "stalled after four consecutive rises," income expectations of German consumers rose for the fifth consecutive month and reached the "highest figure in exactly two years."

"Consumers think that the German economy is clearly on the road to recovery after the sharp decline in spring due to coronavirus," GfK concluded.

For sustained growth however, it was necessary for German exports to "recover significantly" which could only be achieved if the "main countries that buy German goods and services can recover from their deep recession," according to GfK. Enditem