Germany’s consumer confidence is set to drop slightly in September, but the mood is likely to remain positive due to a stable job market, survey data from the market research group GfK revealed Wednesday.
The forward-looking consumer sentiment index dropped to 10.5 in September from 10.6 in August. The score was forecast to remain unchanged at 10.6.
While economic expectations improved, income expectations and the propensity to buy declined in August.
Underpinned by the current economic developments, the economic expectations index rose notably to 22.2 in August from 15.7 in July.
Despite a trade conflict with the USA as well as increasing energy prices, the German consumer is once again showing greater economic optimism, the GfK noted. Consumers believe in the German economy’s solid growth trend.
Meanwhile, the income expectations indicator fell to 52.6 from 57.5 a month ago. A lower value was last measured in November 2017 at 47.9 points.
At the same time, the propensity to buy dropped to 55.2 in August from 56.2 in the previous month. Compared to the previous year, the score dropped only three points suggesting the stability of the consumer tendency, GfK said.
The indicator’s excellent track record is due primarily to very good development in the job market and the fear of job loss among employees remained low as before.
According to the Federal Labor Agency, the unemployment rate remained stable at 5.2 percent in July, the lowest since German reunification.