BERLIN, Aug 27 Reuters German consumer sentiment is set to tumble going into September as slightly rising unemployment, job cuts and insolvency39;s drive down income expectations, pushing back hopes of a stable economic recovery, a survey showed on Tuesday.

The consumer sentiment index, published by GfK and the Nuremberg Institute for Market Decisions NIM, fell to 22.0 points going into September from a slightly revised 18.6 the month prior and below a forecast for 18.2.

A tumble in income expectations brought down overall sentiment, falling to 3.5 points from 19.7, as an increase in purchasing power felt by many households was not enough to compensate for their rising labour market uncertainty.

The recovery seen in August was only a blip due to the European Championship, said NIM consumer analyst Rolf Buerkl.

Slightly rising unemployment figures, an increase in company insolvencies and staff reduction plans at various companies in Germany are causing a number of employees to worry about their jobs, said Buerkl, pushing back hopes for a sustainable economic recovery driven by private consumption.

Unemployment rose more sharply than usual at the start of summer break, while economic institutes have predicted a rise in corporate insolvencies. There have also been a string of recent job cuts announced at firms such as Deutsche Bahn, Bayer and ZF Friedrichshafen.

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