Germany's GfK Consumer Climate Index slipped to -30.8 for November and missed market expectations of -29.1. Consumers' view of the broader economy has improved for six consecutive months, but income expectations and willingness to buy fell.
Germany's GfK Consumer Climate Index edged down from -30.6 to -30.8 for November, missing market expectations of -29.1. The reading also remains below the -22.5 recorded a year earlier.
Economic expectations rise for a sixth month
The Economic Expectations Index rose from -3.4 to +2.1 in October, its sixth consecutive monthly increase. It also moved above zero for the first time since the outbreak of the Iran War.
However, the headline indicator has not followed. The findings also echo the latest Ifo survey, which showed improving business expectations alongside weaker assessments of current conditions.
Household finances hold back purchases
The Income Expectations Index slipped from -15.0 to -15.7, while Willingness to Buy declined from -10.8 to -11.9. The Price Expectations Index rose from -0.4 to +1.0, reflecting renewed inflation concerns.
Germany's annual inflation rate reached 3.3% in September, partly driven by higher fuel costs. NIM noted that the reintroduction of the gas rebate had so far failed to generate the hoped-for recovery in income expectations.
Rolf Bürkl, Head of Consumer Climate at NIM, observed: "The hope for an economic upswing is there", but willingness to buy has not yet followed.
Willingness to Save fell from +21.5 to +17.2, but the decline was not accompanied by any improvement in purchase intentions.
Source: ActionForex
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