German consumer morale may dip in September on job loss concerns

Sentiment among German consumers is expected to fall for the third time in a row in September, uncertainty about inflation weighing on the mood

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Sentiment among German consumers is expected to fall for the third time in a row in September, with households' growing concerns about possible job losses and uncertainty about inflation weighing on the mood, a survey showed.

The consumer sentiment index, published by the GfK market research institute and the Nuremberg Institute for Market Decisions (NIM), declined to -23.6 points from a slightly downwardly revised -21.7 points the month before. Analysts polled by Reuters forecast a reading of -22.0.

A sharp fall in income prospects, which hit their lowest level since March, played a significant role in the overall decline, according to NIM consumer analyst Rolf Buerkl.

"Growing fears of job loss are causing many consumers to remain cautious, especially when it comes to major purchases," said Buerkl.

"Uncertainty about how inflation will develop is also affecting consumers, who fear that the geopolitical situation and the US government's tariff policy could lead to higher energy prices, among other things, according to the survey.