German consumer morale struggles to recover

German consumer morale improved less than expected heading into October, a survey showed on Wednesday, putting a damper on hopes that household spending in Europe’s largest economy will drive a quick recovery from the pandemic shock. The GfK institute said its consumer sentiment index, based on a survey of around 2,000 Germans, edged up to minus 1.6 heading into October from an upwardly revised minus 1.7 in the previous month.

GfK consumer expert Rolf Buerkl said the German consumer climate had stabilized despite a recent rise in new coronavirus infections.

“It seems as if the massive stimulus packages for consumers and companies are the right measures to help Germany get out of the worst recession in post-war history,” he said.