German shoppers are becoming slightly more optimistic heading into October, a major survey released on Thursday showed, although the outlook for Europe’s largest economy remains bleak.
According to polling firm GfK and the Nuremberg Institute for Market Decision Making (NIM), the outlook index stood at minus 21.2 points in October, up 0.7 points from the previous month.
NIM consumer expert Rolf Buerkl said the survey of around 2,000 people showed a “slight increase” in consumer confidence but added that it did not signal “the beginnings of a noticeable recovery.”
“The current consumer mood is too unstable for that to happen,” he said in a statement.
Buerkl said geopolitical crises, inflation and growing concerns about job security were creating greater uncertainty for consumers.
But the survey found that rising wages and Germany’s inflation rate stabilising at around 2 percent made respondents more optimistic about their income prospects than they were a month ago.
Consumers became more inclined to make big-ticket purchases, even as purchasing intent remained at “very low levels.”
At the same time, respondents said they were more pessimistic about the outlook for the German economy than before.
Germany’s economy is struggling to recover after shrinking in 2023, hit hard by rising energy costs, a slump in industry and weak demand from key market China.
Leading economic institutes have lowered their forecasts in recent weeks and now expect the German economy to stagnate or shrink slightly again this year.
