German Consumer Confidence Set To Rise Marginally In October

German consumer confidence is set to rise slightly in October, survey data from the market researcher GfK showed Wednesday.

The forward-looking consumer sentiment index rose to -1.6 in October from -1.7 in September.

Despite rising infection figures and the increasing fear of tighter restrictions caused by the pandemic, the consumer climate has stabilized, Rolf Burkl, GfK consumer expert said.

"The further course of the infection rate in Germany and the situation in the labor market will decide whether the previous month's downturn remains a flash in the pan and whether consumer mood is able to recover in the coming months."

While economic and income expectations were on the rise, propensity to buy has taken a hit.

Consumers assessed that the largest euro area economy is clearly on the road to recovery. The economic expectations index gained 12.4 points to 24.1 in September.

A stable labor market and the falling number of short-time workers supported the rising economic optimism.

The income expectations index rose 3.3 points to 16.1 in September. In contrast to income expectations, the propensity to buy stalled after four consecutive rises. The indicator dropped by 5.3 points to 38.4.

The survey was conducted between September 2 and 14.