German consumer morale falls slightly heading into October

Record ID: 85163

  • Title: German consumer morale falls slightly heading into October
  • Date: 28th September 2016
  • Summary: NUREMBERG, GERMANY (SEPTEMBER 28, 2016) (REUTERS) EXTERIOR OF GFK (GERMAN MARKET RESEARCH COMPANY) HEADQUARTERS GFK LOGO ON BUILDING GFK CONSUMER EXPERT, ROLF BUERKL WALKING INTO ROOM (SOUNDBITE) (German) GFK CONSUMER EXPERT, ROLF BUERKL, SAYING: "We can see from the September results of consumer confidence that consumer spending dropped from 10, 2 to 10,0 points from September to October. Consumers have slightly reined in their mood." VARIOUS OF CONSUMER SPENDING GRAPH (SOUNDBITE) (German) GFK CONSUMER EXPERT, ROLF BUERKL, SAYING: "The results of Great Britain leaving the EU and the significantly increased terror threat in Germany are creating a certain amount of insecurity with consumers. So psychological elements play an important role and these influence the good solid facts. Like the fact that general consumer conditions in Germany are: stable employment, rising wages and low inflation." GFK GRAPHIC INFO (SOUNDBITE) (German) GFK CONSUMER EXPERT, ROLF BUERKL, SAYING: "What the consumers see at the moment is that there are external political and economic risks that are dampening the economic outlook. Some institutions have retracted their predictions for gross domestic product because they see that certain events like Brexit or the terror threat or weaknesses in other countries, for example in Asia, and South America could impact the German economy." GFK INFO GRAPH (SOUNDBITE) (German) GFK CONSUMER EXPERT, ROLF BUERKL, SAYING: "I think the results for this year's last quarter will not be bad. You have to take into account that income expectations and buying propensity are deciding factors in assessing the consumer climate and in this case the complaints are relative. There has been some decline this month but we are within the 50 points mark which is a very high value and against the background that the conditions are going to stay stable till the end of the year, I expect there to be a stable consumer climate, that we stay within the 10 point mark and this is a very satisfying result for the year."
  • Embargoed: 13th October 2016 10:06
  • Keywords: consumer GFK spending economy shoppers
  • Location: NUREMBERG, GERMANY
  • City: NUREMBERG, GERMANY
  • Country: Germany
  • Topics: Economic Events
  • Reuters ID: LVA00151HBHXP
  • Aspect Ratio: 16:9
  • Story Text: The mood among German consumers worsened slightly heading into October but remains at one of the highest levels in more than a decade, a survey showed on Wednesday (September 28), suggesting that private consumption is likely to compensate for weakening exports.
    The consumer sentiment indicator, published by the Nuremberg-based GfK institute and based on a survey of around 2,000 Germans, fell from 10.2 to 10.0 going into October.
    Record-high employment, rising real wages and ultra-low borrowing costs are boosting the spending power of Germans.
    GfK said the slight fall was linked to a prevailing sense of uncertainty linked to the threat of possible attacks in Germany and the economic consequences of Britain's vote in June to leave the European Union.
    A sub-index measuring economic expectations fell for the third time in a row, suggesting German consumers fear the economy will be weaker over the next few months.
    Data and sentiment surveys published over the summer have painted a mixed picture of Europe's largest economy.
    Industrial production fell the most in 23 months in July while exports unexpectedly posted their steepest drop in nearly a year, adding to evidence that manufacturing is losing momentum as overseas demand, particularly from Asia, wanes.
    While as German business morale hit a 28-month high this month after deteriorating sharply in August on Brexit fears.
    The GfK survey also showed that consumers' income expectations and willingness to buy remained solid at above 50.0 points, despite falling from last month.
    The robust German labour market has resulted in collective wage increases, which coupled with record-low interest rates, continue to encourage traditionally frugal Germans to spend.
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