(Teleborsa) – A setback in 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 the existing growing real income – the planning security, which is especially necessary for purchases of larger families. It’s this one 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 communicate quickly and clearly the burdens and reliefs that 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 index, based on the survey conducted this month, highlights a value of -21.8 points in July, compared to -21 in June (data revised from a preliminary of -20.9). The reading is even worse than analysts’ expectations who estimated a rise in sentiment 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.
