German consumer confidence is expected to deteriorate for a second consecutive month in October, a sentiment survey released Friday showed, an indication that crises in Russia, Ukraine and elsewhere are taking their toll on the mood of businesses and households in Europe’s biggest economy.
The monthly survey of GfK market research group shows consumer confidence falling to 8.3 points for October from an unrevised 8.6 points in September. Nonetheless, confidence remains “at a good level,” GfK said.
Despite some recent economic weakness, Germany unemployment is near record lows, incomes are rising and borrowing costs are historically low.
GfK uses survey data from the current month to derive a figure for the month to come. Economists polled by The Wall Street Journal predicted an October reading of 8.5 points.
“It is above all the various international crises which are behind a slowdown in the consumer climate at present and the first signs of uncertainty are beginning to show among German consumers,” GfK said, adding that if the crises escalate further, a deterioration in general conditions in Germany—which have so far held up—cannot be ruled out.
“In this case, there is a danger that private consumption would no longer fulfill its role as a key pillar of the German economy,” GfK added.