Germany’s GfK Consumer Sentiment index for September dropped to -23.6 from -21.7, falling short of expectations at -21.2. It was the third consecutive monthly decline, with NIM’s Rolf Bürkl describing sentiment as “definitely in the summer slump.”
The key driver was a sharp fall in income expectations as worries about job security intensified. Registered unemployment remained just below three million in July, but analysts expect that mark to be breached in August. Consumers’ expectations of rising unemployment have reached their highest level of the year.
