The GfK institute said on Thursday its consumer sentiment index, based on a survey of around 2,000 Germans, fell to —1.6 points heading into December, from a revised 1.0 points a month earlier.

The December reading was the lowest since June and compared with a Reuters forecast for a smaller drop to -0.5.

The survey was followed by detailed gross domestic product data which showed household spending was the sole driver of a weaker-than-expected economic expansion in the third quarter, more than offsetting a drop in company investments and state consumption over the summer.

Gross domestic product in Europe’s largest economy grew by 1.7% quarter-on-quarter in adjusted terms from July to September, the Federal Statistics Office said. That fell short of a flash estimate of 1.8% published last month.

The data marked a slowdown in German growth from an upwardly revised expansion of 2% from April to June. The economy shrank by 1.9% on the quarter in the first three months of the year.

A 6.2% jump in consumer spending in July-September from the prior three months contributed 3 percentage points to the overall growth rate in the third quarter. «This is due to catch-up effects in the service sector. Restaurants, bars and the hotel industry in particular benefited,» VP Bank Group analyst Thomas Gitzel said.

Source : Reuters on Twitter, 25/11/2021