GfK Institute: Consumer confidence in Germany is unlikely to recover this year

A survey conducted by the GfK Institute showed today that consumer sentiment in Germany is expected to decline in October, as continued high inflation encourages people to save and eliminates the chances of recovery before the end of the year.

The consumer confidence index fell to -26.5 expected in October from -25.6 in September, which is lower than the expectations of -26.0 expected in October. The GfK Institute said that domestic demand will not improve until the inflation rate returns to an acceptable level, adding that it is not yet possible to predict when Achieving this goal.

The GfK Institute explained that the slight decline for the second month in a row is primarily due to a jump in consumers’ propensity to save, which reached 8.0 points in September, the highest level since April 2011, after a reading of only 0.5 in August.

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