According to the report from GfK Group, German consumer sentiment continues to show a mixed picture for September. On the one hand, economic outlook and propensity to buy have seen gains, while on the other, income expectations have declined. 

For October, GfK forecasts an increase in consumer climate of 0.2 points from the previous month to 9.9 points. The index was expected to remain at 9.7.

In addition to the already familiar flashpoints such as a global economic slowdown, trade conflicts and Brexit discussions, the decision of European Central Bank (ECB) to further relax its monetary policy is having an impact on consumers in September. Propensity to buy has benefited as a result, showing a notable increase, while propensity to save saw a significant drop. Income expectations also saw a slight drop. In contrast, economic outlook saw a slight increase again.

According to consumers, the risk of a recession still cannot be eliminated. The trade conflict with the US as well as the lack of clarity as to whether there will be a no-deal Brexit are above all affecting export-driven companies and their suppliers though are certainly impacting the rest of the economy as well.