Consumer confidence in Germany is set to recover modestly in November, after falling in October to an all-time low. Market research group GfK’s forward-looking consumer-sentiment index forecasts confidence rising to minus 41.9 in November from a revised figure of minus 42.8 in October. November’s figure is above a forecast from economists polled by The Wall Street Journal of minus 42.0.
“It is certainly too early to speak of a trend shift at this time,” GfK’s consumer expert Rolf Buerkl said. He added that the situation remains very tense for consumer sentiment. Mr. Buerkl explained that inflation has recently risen to 10% in Germany, and concerns about the security of energy supplies continue to rise. “Therefore, it remains to be seen whether the current stabilization will last or whether, considering the upcoming winter, there is reason to fear a further worsening of the situation,” he said. GfK uses data from subindexes from the current month to derive a sentiment figure for the coming month. While economic expectations suffered minimal losses, both income expectations and propensity to buy increased. Economic expectations fell to minus 22.2 in October from minus 21.9 in September. “Consumers expect the German economy to slip into recession, …