BRUSSELS (dpa-AFX) - German consumer confidence is set to fall in October as rising energy prices dragged down income expectations, monthly survey results of the NIM Consumer Climate powered by GfK showed Friday.
The forward-looking consumer sentiment index fell more-than-expected to -30.6 in October from -26.8 in September. The score was seen at -27.1.
Households became more sceptical about their income expectation for the coming twelve months as they expect higher energy prices to reduce their purchasing power.
The income expectations index plunged 16.7 points to -15.0 in September, the lowest since April 2026, shortly before the introduction of the fuel rebate.
A noticeable increase in the willingness to save also weighed on consumer sentiment. Amid rising energy prices and economic uncertainty, consumers believed it is better to save.
The willingness to save indicator advanced six points to 21.5 in September. A similarly high level was last reported during the financial crisis in 2008. The NIM observed that the willingness to save increased more sharply among households with a strong financial position.
In contrast to income expectations and the willingness to save, the willingness to buy dropped only one point to -10.8.
Consumers' economic expectations improved for the fifth straight month in September. The corresponding index rose to -3.4 from -3.9 in August.
GfK noted that the largest euro area economy remained surprisingly resilient in the first half of the year. Research institutes revised their growth forecasts for this year and the next upwards. The institutes expect just over one percent growth for 2026 and 2027.
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