GfK sees German Oct consumer climate index at 8.8 pts, highest in nearly 5 yrs

The GfK market research institute said its consumer climate index for Germany is forecast to climb to 8.8 points in October, the highest level in nearly five years, after the index reached 8.6 points in September. The October reading, the highest since November 2001, beat the 8.6 point forecast of economists polled by AFX News. Consumer sentiment was strengthened in September by an increased willingness among consumers to buy big-ticket items ahead of next year's hike in value-added tax (VAT), GfK said in its consumer climate survey. The institute's index measuring consumers' willingness to spend rose 6.2 points to 62.3 in September. The economic expectations index, which measures consumers' optimism about the economic outlook, added 1.0 point to 12.4. The index measuring consumers' expectations about their own incomes declined, however, falling 5.0 points to minus 8.8.