BERLIN: Economic expectations have recorded a third successive monthly drop in Germany, with consumers in Europe's largest economy concerned by a slowdown in GDP growth.

The new report, from market research firm GfK, suggested that Germany's economic expectations index had fallen to -18.9 points this month, down 13.3 points from July and a 32.3 point drop from a year before.

GFK added that this continuing pessimism was partly due to slower than predicted GDP growth, with the German economy expanding by just 0.3% during last quarter for which official figures are available.

Despite this, and concerns over the ongoing debt crisis in Spain, Italy and Greece, German consumers' current willingness to buy has stayed relatively steady at 33.1 points – only slightly below its 2011 level.

"A stable job market and the comparatively high wage agreements compared to previous years are proving to be positive factors encouraging major purchases," the report added.

GFK also cited low interest rates as a key factor behind the continuing willingness to spend, as deposit accounts currently represent a low-return option, and consumers continue to show a lack of confidence in the banks.

Income expectations are also an influential factor in the overall German economic climate.

Despite a drop of 4.7 points – the second successive monthly fall – the metric still stood at 31.6 points in August, which is four points higher than for the corresponding period in 2011.

Data sourced from GfK; additional content by Warc staff