Sentiment index rises more than expected
Reaches highest level since April 2022
Economic expectations register third straight fall

BERLIN, Oct 29 Reuters German consumer sentiment is set to continue to recover heading into November as households are more optimistic about their income prospects, though high prices and bad job market news are diluting those positive factors, a survey showed on Tuesday.

The consumer sentiment index, published by GfK and the Nuremberg Institute for Market Decisions NIM, increased more than expected going into November, rising to 18.3 points from a slightly revised 21.0 the month before. Analysts polled by Reuters had expected a much smaller rise, to 20.5.

Income expectations and the propensity to buy improved for the second time in a row, while the propensity to save declined slightly, boosting the overall index to its highest value since April 2022, though still at a low level, found the survey.

Economic expectations for the next 12 months for Europe39;s largest economy fell for the third time in a row, said the survey.

That tracks with the government39;s forecast for a 0.2 contraction for 2024, which would mark a second year of decline and cement Germany39;s place as a laggard among its large eurozone peers.

The uncertainty caused by crises, wars and rising prices is still very pronounced at the moment and prevents positive factors for consumption, such as noticeable real income increases, from having their full effect, said NIM…