German Consumer Sentiment Shows Slight Rise

(MENAFN) Consumer confidence in Germany is anticipated to edge up slightly in June, although overall morale remains subdued due to lingering economic volatility both globally and domestically, according to a statement on Tuesday by market research organization GfK.

GfK predicted that the consumer climate index would reach minus 19.9 points in June, a modest increase of 0.9 points compared to the revised figure of minus 20.8 from May.

"The level of consumer sentiment remains extremely low, and consumer uncertainty remains high," stated Rolf Burkl, a consumer analyst at the Nuremberg Institute for Market Decisions (NIM), the body responsible for compiling the figures.

Burkl attributed the persistently low sentiment to multiple issues, including the erratic trade strategies pursued by the United States, instability in financial markets, and apprehensions over the possibility of a third straight year of economic stagnation.

"In view of the general economic situation, people seem to think it advisable to save," he remarked, highlighting the public's tendency to increase savings in uncertain times.

In terms of specific indicators, the income expectations index improved by 6.1 points in May, reaching minus 10.4 — the highest value observed since October 2024. Optimism regarding the economy also rose, with the economic expectations index climbing 5.9 points to hit 13.1, marking the best level seen in two years.

Nevertheless, consumer propensity to make purchases declined by 1.5 points to minus 6.4 in May. This drop indicates that despite a slightly brighter outlook, households are still wary about spending money on non-essential items.

The report further noted that “uncertainty caused by the US government's unpredictable customs and trade policy and a rise in unemployment, which is causing many employees to worry about their own jobs, is continuing,” underscoring the enduring sense of insecurity affecting consumer behavior.

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