German October GfK Consumer Climate Sinks to -30.6 on Surging Energy Costs

Germany's forward-looking GfK consumer climate index dropped to -30.6 heading into October, down from a downwardly revised -26.8 and missing market expectations of -27.4. The decline was driven by higher utility and energy costs, which pushed income expectations from 1.7 to -15.0, their lowest level since April. Consumers turned to precautionary saving, with the propensity to save index jumping from 15.5 to 21.5, reaching its highest level since the 2008 financial crisis. Willingness to buy slipped from -9.8 to -10.8, while economic expectations rose from -3.9 to -3.4.