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25.05.2022 09:17:09

German Consumer Confidence Set To Improve Slightly: GfK

(RTTNews) - Germany's consumer confidence is set to improve marginally in June, though it remained at a historical low as high inflation and the war in Ukraine weighed heavily on consumer sentiment, survey results from the market research group GfK showed on Wednesday.

The forward-looking consumer sentiment index rose to -26.0 in June from a revised -26.6 in May. The expected score was -26.0.

The latest survey was conducted from May 5 to 16.

Households' opinion regarding both economic and income expectations showed moderate gains, while their willingness to buy was almost unchanged.

The economic expectations index rose 7.1 points to -9.3 in May.

The income expectations index gained 7.6 points to reach -23.7 in May, after falling to a near 20-year low in the previous month.

The propensity to buy indicator shed 0.5 points to reach -11.1 points.

"Despite further easing of corona-related restrictions, the Ukraine war and above all the high inflation are weighing heavily on consumer sentiment," Rolf Burkl, GfK consumer expert, said.

The survey revealed the income expectations remains extremely low, linked to higher energy and food prices amid the uncertainty caused by the Ukraine war.

Although the consumer sentiment improved marginally in June, consumers still fear a recession, while supply chain problems and lack of semi-conductors are currently preventing a sustained recovery in large part of Germany economy, the survey said.


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