Consumer confidence in Germany rose to a 15-month high in September, with the GfK index rising to 3.7 from a revised 3.4 in August. The breakdown of the report showed income expectations jumped from 1.8 in July to 8.38 in August, largely due to the government’s second quarter stimulus measures. At the same time, the survey showed the gauge measuring consumers’ willingness to buy increased from 25.1 to 31.1 in August, and the data encourages an improved outlook for private spending as the government takes unprecedented steps to stimulate the ailing economy. However, as the Bundesbank forecasts economic activity to remain subdued going into the following year and holds a weakening outlook for employment, fears of a slower recovery may weigh on household sentiment over the coming months.
Al Bawaba
