There was a setback in the month of June for the recovery of consumer confidence in Germany. Both the income that the expectations economic losses have suffered moderate losses. There Availability to purchase it decreased slightly compared to the previous month and therefore continues to stagnate at a very low level. The availability to savings instead it increased slightly, consolidating its already high level.
Taking these developments into account, the overall consumer climate worsens slightly, the report highlights GfK Consumer Climatepublished jointly by GfK and the Nuremberg Institute for Market Decisions (NIM).
After four consecutive increases, consumer sentiment has suffered a slight setback. In addition to the slight decline in income expectations, this is mainly due to the willingness to save, which increased by 3.2 points to 8.2 points in June.
“The interruption of the recent recovery in consumer confidence shows that consumption will still be held back and that there can always be setbacks,” he explains Rolf Buerkl, consumer expert at NIM. “The slightly higher inflation rate in Germany in May is clearly causing it again greater uncertainty among consumerswhich is also reflected in theincreased willingness to save. For a lasting recovery in consumer confidence, consumers need – in addition to existing and growing real income – planning security, which is especially necessary for purchases by larger families. And this safety will only return if the upward pressure on prices is further attenuated and, whether, consumers will be shown clear future prospects. This also means that The Government must quickly and clearly communicate the burdens and relief people will face as a result of the upcoming budget discussions. Then they will be able to prevail on the significant increases in real income and consumers will be willing to spend more”, adds Rolf Buerkl.
L’GFK indexaccording to the survey conducted this month, shows a value equal to -21.8 points in July, compared to -21 in June (revised from a preliminary figure of -20.9). The reading is also worse than analysts’ expectations, who estimated a rise in sentiment up to -19.4 points.
Expectations on the economic situation also worsen, with the indicator falling by 4.3 points to +8.2 after four consecutive increases. The indicator on propensity to purchase slipped by 0.7 points to -13 points. The one on income expectations rises by 3.2 points and stands at +8.2 points.
