BERLIN, Sept 26 Reuters German consumer sentiment is expected to stabilise at a low level going into October, with households more willing to save money amid concerns about where Europe39;s largest economy is heading in the next 12 months, a survey showed on Thursday.

The consumer sentiment index, published by GfK and the Nuremberg Institute for Market Decisions NIM, unexpectedly increased slightly to 21.2 points going into October from a revised 21.9 the month before. Analysts polled by Reuters had expected the index to fall to 22.5 going into October.

After the severe setback in the previous month, the slight improvement in consumer sentiment can be interpreted as stabilisation at a low level, said NIM analyst Rolf Buerkl.

The consumer climate has not made any progress since June 2024, when 21 points were measured for the consumer climate. Therefore, the slight increase cannot be interpreted as the start of a noticeable recovery, said the consumer analyst.

Labour market woes have been added to the list of factors weighing on sentiment, such as war and inflation, he added.

An improvement in income expectations and the propensity to buy boosted overall sentiment but was weighed down by a rise in the willingness to save and a fall in economic expectations.

The latest economic data paint a gloomy picture, with data earlier this week showing German business activity contracting in September at the sharpest pace in seven months and leading institutes slashing their…