German Consumer Sentiment Expected to Weaken in November

Euro-area consumers’ inflation perceptions and one-year inflation expectations edged higher in September, while longer-term inflation expectations held steady; they also anticipated faster income and spending growth but weaker economic growth and higher unemployment. In Germany, consumer confidence slipped slightly heading into November, with the index falling to -30.8 from -30.6 and remaining deeply negative. German consumers’ economic outlook improved for a sixth consecutive month and willingness to save eased, but weaker income expectations, declining willingness to buy and renewed inflation concerns continued to weigh on household spending plans. The reports point to persistent cost-of-living pressure alongside a tentative improvement in expectations for broader economic conditions.