Updated
Updated · investinglive.com · Jun 25
Germany’s July Consumer Sentiment Improves to -29.2 as Income Expectations Edge Higher
Updated
Updated · investinglive.com · Jun 25

Germany’s July Consumer Sentiment Improves to -29.2 as Income Expectations Edge Higher

2 articles · Updated · investinglive.com · Jun 25

Summary

  • Germany’s GfK consumer sentiment rose to -29.2 for July from a revised -29.7 in June, marking a modest recovery from recent lows but missing the -27.6 forecast.
  • A 0.8-point rise in income expectations to -12.2 drove the improvement, while willingness to buy and willingness to save stayed largely unchanged.
  • GfK said consumer climate is stabilizing at a low level, with purchasing appetite still in pessimistic territory and no sign yet of a return to pre-war norms.
  • Lower crude oil prices and peace negotiations are easing inflation worries and slightly improving economic expectations, but the broader consumer backdrop remains weak.

Insights

Pessimism is high but spending continues. Has consumer sentiment become an irrelevant economic indicator?
With only the wealthy driving spending, is Germany's consumer economy heading towards a cliff?