FRANKFURT AM MAIN  - German consumer morale is expected to hold steady in November despite mounting concern over a hard Brexit and trade tensions, a key survey showed.

A forward-looking monthly barometer by pollsters GfK stood at 10.6 points for November, unchanged from October.

The survey of some 2,000 people showed a mixed picture, with consumers planning to spend more on big purchases while at the same time expressing growing pessimism about the economic outlook and their income expectations.

“The reading remains at a good level overall,” GfK said in a statement.

Morale was dampened by the ongoing trade row between the United States and China, which is expected to have knock-effects on export-reliant countries like European powerhouse Germany.

The deadlocked negotiations over Britain’s exit from the EU, and the growing risk of a no-deal Brexit that would massively disrupt trade, also weighed on consumers’ minds.

But Germany’s “excellent” labour market, rising wages and ongoing low interest rates meant consumers were nevertheless in the mood to shop.

“Apparently unfazed by external risks... consumers remain willing to spend money,” the pollsters said.

The German government earlier this month slashed its growth forecasts for 2018 and 2019, blaming a weaker international trade environment.

After an expansion of 2.2 percent in 2017, gross domestic product should expand by 1.8 percent this year and next, the economy ministry said.