German Gfk consumer climate for September dropped -0.1 to 10.5 , below expectation of 10.6. Gfk noted that consumer mood “did not present a uniform picture”. There was improvement in economic expectations, stopping multi-month downswing. consumers believed in the economy’s solid growth trend despite trade conflict with the US. But income expectations and propensity to buy declined. Higher energy prices could have been a reason. Also, savings are increasingly losing value due to inflation.
Over all, Gfk noted that “the positive outlook for the consumer economy will only continue as is if the job market remains stable, which is the current assumption, and there are no additional risks threatening from the price front. A further increase in inflation would certainly dampen the consumer climate. ”
From France, Q2 GDP grew 0.2% qoq, unrevised from initial estimate.
