German consumer confidence is set to weaken to a 7-month low in November as weak global growth is expected to affect the domestic activity, a closely watched survey revealed Wednesday.
The forward-looking consumer sentiment index fell to 9.7 from 10.0 in October, the Nuremberg-based market research group GfK said in its monthly survey report.
The score was forecast to remain unchanged at 10.0. The indicator has fallen below the ten-point mark for the first time since June 2016 and reached its lowest value since April.
Although consumers weathered fears of the 'Brexit' decision, global economic growth is forecast to remain weak. Furthermore, the international trouble spots, some of which have increased the risk of terrorism for Germany, have probably had a somewhat negative impact on consumer confidence.
Consumers' assessment of overall economic prospects became more positive for the first time in four months in October, while consumers have become less optimistic in terms of both income prospects and the propensity to buy.
The economic expectations index gained 6.2 points to 13.0 in October. For the first time, consumers seem to have digested the British people's decision to leave the European Union, GfK said.
The income expectations indicator dropped 7.8 points to 44.8 in October, and thus slid below the 50-point mark. This was its lowest value since November 2015.
Due to a fall in income expectations, the propensity to buy dropped for the second time in succession. The index dropped 3.4 points to 49.9, just below the 50-point mark, reaching its lowest since December 2015.
The survey was conducted among 2,000 consumers on behalf of the European Commission.
by RTT Staff Writer
For comments and feedback: editorial@rttnews.com
Economic News
What parts of the world are seeing the best (and worst) economic performances lately? Click here to check out our Econ Scorecard and find out! See up-to-the-moment rankings for the best and worst performers in GDP, unemployment rate, inflation and much more.
