Rising fears of inflation affected consumer sentiment this fall. The findings not only recorded a downturn in both economic and income expectations, but also in the propensity to buy. Following the revised figure of 6.7 points in October, the consumer climate forecast for November is 4.9 points.

The fear of inflation which arose suddenly in late summer as a reaction to the price increases is one of the main factors impacting the consumer climate since then. And the result is more modest income expectations and rather more restraint in the inclination to buy. A strong euro and growing skepticism in respect of further economic development have put a damper on German economic expectations.

Economic expectations dipped slightly in October. The indicator fell by 1.6 points to its current level of 39.1 points. Nevertheless, it is still 32.2 points above the level for the prior year.

Consumer income expectations dropped back again slightly. The indicator fell by 3 points to its current level of -0.7 points. This means that, at a level very slightly above that of the same period the previous year, consumer income expectations remain within the average range, which is around 0 points.

After the clear decline which was already evident in September, the buying propensity again dropped this month. At 10.5 points down this October, the loss is even steeper than last month. The indicator currently stands at -12.9 points.

The consumer climate has declined in the light of the lower income expectations, lower propensity to buy and the parallel rise in the propensity to save. Following the revised level of 6.7 points for October, the indicator forecast for November is 4.9 points.