Germany Consumer Confidence

The GfK Consumer Climate Indicator for Germany climbed to -18.4 heading into August 2024 from a marginally revised -21.6 in the previous period, above market estimates of -21.0. It was the highest reading since April 2022, amid easing cost pressures and rising wages. Income expectations were significantly higher (19.7 vs 8.2 in July), notching their highest level in nearly 3 years. Also, there were rises in economic prospects (9.8 vs 2.5) and the propensity to buy (-8.4 vs -13.0). Meanwhile, the tendency to save was almost unchanged. "It is very likely that the European Championship euphoria... played a role here," said Rolf Bürkl, consumer expert at NIM. He added, however, it remains to be seen whether the upturn in consumer mood was sustainable or just a short-term flare-up. For a solid improvement in consumer sentiment, Bürkl believed that consumers need a sustained increase in real income and more evidence that the economy can maintain its recovery path.