German consumer confidence improves as income expectations rebound

(Sharecast News) - German consumer sentiment improved noticeably in August as income expectations recovered and households became slightly less inclined to save, according to the latest survey from the Nuremberg Institute for Market Decisions. The NIM Consumer Climate indicator, powered by GfK, rose 2.8 points to a six-month high of -26.6 for September, from a revised -29.4 previously.

The improvement was driven primarily by a sharp rise in income expectations, which jumped 16.2 points to 1.7, also the highest level in six months. Economic expectations also increased for a fourth consecutive month, rising 2.4 points to -3.9.

Rolf Bürkl, head of consumer climate at NIM, said the consecutive gains in economic expectations indicated a "slight upward trend", despite the outlook indicator still being more than six points below last year's levels.

"Signals from the economy are also generally positive. Gross domestic product performed better than expected in the second quarter of this year, growing by 0.3 per cent."

However, consumers remained reluctant to spend. The willingness-to-buy indicator was virtually unchanged at -9.8 and has hovered around the -10 level for roughly four years.

Meanwhile, the willingness to save remained elevated, despite easing slightly by 1.5 points to 15.5.