GfK consumer sentiment fell to -28 versus expectations of -27.4 and -24.7 previously, signaling a deterioration in household purchasing conditions.
German consumer sentiment is expected to weaken ahead of April, as households anticipate higher energy prices driven by the war in Iran, which may increase inflation and weigh on Germany’s fragile economic recovery.
- The consumer sentiment index, published by GfK and the Nuremberg Institute for Market Decisions (NIM), fell by 3.2 points to -28.0 for April.
- Analysts surveyed by Reuters had expected a smaller decline, to -27.0 points.
- Consumers’ income expectations dropped into negative territory amid concerns that inflation could erode purchasing power.
- Economic expectations also declined, reaching their lowest level since December 2022.
- The survey indicates that many consumers fear the German economy’s cautious recovery could face a significant setback, especially if the conflict persists.
- According to a recent NIM study, 60% of Germans expect oil, gas, and fuel prices to remain elevated in the long term, which negatively affects consumer sentiment, said Rolf Buerkl, head of consumer climate at NIM.
In France, the business climate indicator remained unchanged from the previous reading at 97, compared to expectations of 96; however, in the manufacturing sector it declined to 99 versus 101 expected and 102 previously, while consumer sentiment dropped to 89 from 91 previously
Source: xStation5
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