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9/28, 8:04 AM (Source: TeleTrader)
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Germany's consumer confidence to dip further in Oct. - GfK

Consumer confidence in Germany declined in September and is expected to plummet by a further 5.7 points month on month in October to come in at negative 42.5 points, market research institute GfK revealed in a report on Wednesday.

This month's leading cause of the decline is the decrease in income expectations, which fell 22.4 points to a negative 67.7 points, the lowest reading since this value was measured in 1991. Economic expectations continue declining in September, falling 4.3 points to a negative 21.9, the lowest value since May 2009. On the other hand, the propensity to buy indicator dropped by 3.8 points from the month prior, landing at negative 19.5 and marking a fresh low since October 2008.

"The current very high inflation rates of almost eight percent are leading to large real income losses among consumers and thus to significantly reduced purchasing power," explains Rolf Bürkl, GfK consumer expert. "Many households are currently forced to spend significantly more money on energy or to set money aside for significantly higher heating bills. Accordingly, they need to cut back on other expenses, such as new purchases. This is sending consumer sentiment plummeting to a new record low."

Baha Breaking News (BBN) / JG