German consumer confidence has rebounded slightly owing to lower oil prices, but its rise could be nipped in the bud by the ongoing international financial crisis, a study by the GfK institute shows today.
The latest barometer of consumer sentiment in Europe's biggest economy edged up to an indexed 1.8 points for the month of October, from a revised September reading of 1.6 points.
The stabilisation in consumer confidence was based solely on easing inflation pressures that stemmed from lower energy costs, Nuremburg-based GfK said.
Its study questioned around 2,000 people and found that German households were somewhat more optimistic regarding income prospects, and felt a slightly greater propensity to make major purchases.The sub-index reading on buying propensity is coming off a recent three-year low, however.
And the risk that the chronic financial crisis might plunge Germany's economy into recession could push consumer confidence lower again in the coming months, GfK warned.
Its overall consumer climate index refers to October, while the sub-indexes for income expectations and buying propensity referred to this month.
The research group also forecast that consumption would not increase this year, revising a modest previous forecast of a 0.5% expansion to zero.
