German consumer confidence is set to improve in November on increasing propensity to consume, survey results from the market research group Gfk showed on Wednesday.
The forward-looking consumer confidence index rose to 0.9 in November from revised 0.4 in October. Economists had forecast the index to fall to -0.5.
With this second rise in a row, consumer sentiment is defying rising inflation, Rolf B?rkl, GfK consumer expert, said. The German citizens apparently expect further price increases. That is why they consider it advisable to make purchases in order to avoid even higher prices.
"If the upward price trend were to persist, however, this would have a negative impact on the consumer climate and a fundamental recovery is likely to be delayed further," said B?rkl.
The propensity to buy increased again, while economic and income expectations declined considerably in October.