German consumer climate falls for 2nd consecutive month in Oct

German consumer climate declined for the second consecutive month with the overall indicator at 9.6 points in October, following a value of 9.9 points in September, market research group GfK reported Thursday.

According to GfK, income expectations, economic expectations and the willingness to buy of German consumers have all suffered losses.

"In light of the global economic risks, numerous flash points, and the recent sharp increase and largely uncontrolled influx of refugees, citizens apparently have increasing doubts regarding further economic development," said Rolf Buerkl, an analyst for the Nuremberg-based research group.

Buerkl said that the indicator is still at a very good level, and it can be assumed that consumption will continue to be an important pillar of the economy this year overall considering the extremely positive development of the retail sector.

However, GfK's report also noted that if the German citizens become anxious due to the large influx of refugees and fear for their jobs, it would have a negative effect on consumption and thus balance out any gains.

The GfK consumer climate survey has been conducted since 1980. Its findings are based on around 2,000 consumer interviews conducted each month on behalf of the European Commission, the executive body of the European Union. Endit