German Consumers Remain Pessimistic On Inflation Fears

(RTTNews) - German consumer confidence is set to weaken in November due to rising inflation concerns and subdued income prospects, survey data from the Nuremberg Institute for Market Decisions and the GfK market research institute showed Wednesday.

The forward-looking consumer climate index fell slightly to -30.8 in November from -30.6 in October. The reading was expected to improve to -30.1.

Economic expectations improved for the sixth consecutive month in October and the willingness to save decreased moderately, while the willingness to buy continued to decline slightly. Income expectations weakened somewhat since September.

"Although consumers are increasingly optimistic about economic developments, skepticism continues to prevail when it comes to their own wallets," NIM Head of Consumer Climate Rolf Bürkl said.

Growing inflation concerns and subdued income prospects are dampening the willingness to buy, even as the willingness to save is declining moderately, Burkl noted.

Burkl observed that the gas rebate does not seem to be providing the relief that was hoped for. Although the hope for an economic upswing is there, the willingness to buy has not yet followed suit, added Burkl.

At 2.1, the economic expectations index reached above zero for the first time since the outbreak of the Iran war. The indicator suggests that consumers are increasingly optimistic about Germany's future economic development.

The income expectations index dropped 0.7 points to -15.7 in October. Despite the introduction of gas rebate, income expectations showed only signs of stabilization following the sharp decline in the prior month.

The willingness to save dropped 4.3 points to 17.2 in October. Although the score remained at a high level, it declined moderately supporting the consumer climate.

The willingness to buy has not benefited from the falling willingness to save. The indicator posted -11.9, down from -10.8 in September.