German shoppers are heading into November feeling gloomy with consumer morale hitting a three-year low on fears the country could tip into recession, a forward-looking monthly survey said Thursday. The GfK institute's confidence barometer lost 0.2 points month-on-month to 9.6, its lowest level since November 2016, the pollster said in a statement. "On top of well-known risk factors such as global economic weakness, trade conflicts and Brexit chaos, reports of job losses are multiplying, for instance in the automotive and finance sectors," it said. "Many consumers feel that the risk of Germany sliding into recession has grown."
GfK's survey asks some 2,000 people about their expectations for economic activity and salaries, as well as their openness to making purchases. On all three issues, respondents were more pessimistic than last month. Despite the darkening clouds, GfK noted that Germans remained in the mood to shop, benefitting from a strong labour market, high wages and low incentives to save.
Germany's economic output shrank by 0.1 percent between April and June, and figures slated for release next month are expected to show a contraction in the third quarter as well - meeting the definition of a technical recession.
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