By Dow Jones Business News, October 31, 2013, 03:24:00 AM EDT
By Nina Adam
German consumer sentiment slipped unexpectedly, although the mood remained generally upbeat in light of a robust labor
market, a survey by the country's leading market research institute showed Thursday.
GfK's forward-looking consumer sentiment indicator fell for the first time in 10 months, dropping to 7.0 points in
November after hitting a six-year high of 7.1 points in October. Economists polled by Dow Jones Newswires had forecast
an increase to 7.2 points. While the main GfK indicator refers to next month, all sub-indicators refer to October.
"This does not indicate a trend change," said Rolf Buerkl, who is in charge of the GfK survey. People's economic
expectations further improved in October, albeit modestly, as the corresponding sub-indicator rose to 11.3 points from
10.7 points in September.
Rampant food price inflation, however, continues to eat into consumers' disposable income which, according to GfK, is
denting households' income expectations. The corresponding sub-indicator fell for the third straight month to 32.7 in
October points from 33.7 points in September.
Nevertheless, GfK said that "income expectations are still at an extremely high level" and people are generally
optimistic about their future income amid an improving growth outlook.
"Consumers consider this to be a good time for larger purchases," GfK said, although the corresponding indicator eased
0.6 point to 44.4 points in October, after hitting its highest level since December 2006 in September.
The GfK survey is based on a poll of roughly 2,000 German consumers.
Write to Nina Adam at email@example.com
(END) Dow Jones Newswires
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