MADRID, 27 Sep. (EUROPA PRESS) -

The confidence of German consumers has registered a new deterioration of nine tenths for the month of October, according to the index prepared by GfK, which has stood at -26.5 points, compared to -25.6 the previous month.

According to the data, consumer confidence fell slightly again in September. Although economic expectations increased slightly and both income expectations and the propensity to buy registered minimal growth, the propensity to save increased "significantly", causing a further decline in consumer confidence.

Specifically, the propensity to save rose to 8 points, its highest level since April 2011, which led to consumer sentiment falling slightly for the second consecutive time.

"This means that the chances of a recovery in consumer sentiment this year have probably fallen to zero," said Rolf Bürkl, consumer expert at GfK.

"The reasons for this are a persistently high inflation rate due to sharp increases in food and energy prices. Consequently, private consumption will not be able to contribute positively to overall economic development this year," he stressed.

After the falls of the previous month, income expectations stabilized in September. According to GfK, the high inflation rate of 6.1% deteriorates the purchasing power of households, preventing a sustained recovery in income expectations.

"In particular, the sharp rise in food prices puts considerable pressure on households. In addition, energy prices, such as gas and heating oil, have risen slightly again recently," says GfK.

At the same time, the propensity to buy remains stagnant and does not show a clear trend. "The joy that comes from consumption will only return when the inflation rate is reduced to an acceptable level and households are able to register notable and real growth in their income," the report notes.

Like income expectations, economic expectations also stabilized in September.

This year, the German economy faces a slight recession. According to current forecasts from the Institute for Economic Research (Ifo) and the German Institute for Economic Research (DIW), gross domestic product will contract by 0.4% this year.

Additionally, labor market momentum has weakened. The DIW expects unemployment to increase by around 150,000 people this year. Finally, the increasing number of business bankruptcies has heightened the concern of many workers about losing their jobs.