German Consumer Confidence Expected to Slump to Fresh Record Low In October - GfK

By Scott Kanowsky

Investing.com -- Consumer sentiment in Germany is expected to slump to a fresh record low in October, according to a monthly survey released on Wednesday, as fears grow that soaring inflation stemming from dwindling Russian gas supplies will eat into incomes.

GfK forecasted that its consumer confidence index will fall to -42.5 next month, dropping from a downwardly revised reading of 36.8 in September. Economists had predicted the figure would come in at -39.0.

“Many households are currently forced to spend significantly more money on energy or to set money aside for significantly higher heating bills," said GfK consumer expert Rolf Bürkl in a statement.

"Accordingly, they need to cut back on other expenses, such as new purchases. This is sending consumer sentiment plummeting to a new record low.”

He warned that confidence in Europe's largest economy will face "difficult times" in the coming months, adding that it is "currently impossible" to predict when inflationary pressures will begin to recede.

"Negative real consumer spending will exacerbate the recession trends for the German economy," Bürkl said.