German consumer confidence inches higher, but economic outlook still weak

(Sharecast News) - A closely followed consumer confidence survey in Germany came in better than forecasts on Thursday, but remained "extremely low" by historical standards. The forward-looking Consumer Climate Index from GfK and the Nuremberg Institute for Market Decisions (NIM) increased to -22.3 for October, up from a revised -23.5 in September.

This was the first improvement in the measure in four months and ahead of the consensus forecast of -23.3.

Nevertheless, the index has remained in negative territory since November 2021.

The income expectations gauge jumped to 15.1 from 4.1 the previous month, but the economic expectations measures slipped to -1.4 from 2.7.

At the same time, the propensity to save rose 16.1 from 15.8, while the willingness to buy fell to -11.6 from -10.1.

"After falling for three months in a row, the Consumer Climate has now ended its downward trend - at least for the moment," said Rolf Bürkl, head of consumer climate at NIM.

"Whether this marks the beginning of a sustained turnaround is more than uncertain. The consumer climate remains at an extremely low level. The geopolitical situation, concerns about jobs, and renewed fears of inflation are likely to hinder a thorough recovery at the moment."