Data published by GfK Group showed that the consumer sentiment index for July fell to -27.4 points compared to -26.2 points in June (revised from -26.0 points). Thus, the index reached a new record low (since 1991). However, the index was higher than the economists' forecast (-27.6 points).
"The ongoing Russian-Ukrainian conflict and disruptions in supply chains are the reasons for higher energy and food prices. All this causes an increase in the cost of living and negatively affects consumer sentiment," said Rolf Bürkl, GfK consumer expert.
GfK Group also reported that the index of economic expectations fell again in June - by 2.4 points, to -11.7 points. Compared to June 2021, the index fell by about 70 points. In general, consumers continue to express serious concern about the economy sliding into recession.
As for the expected earnings index, in June it fell by 9.8 points to -33.5 points, reaching an almost 20-year low. Over the past 12 months, the index has declined by almost 68 points. GfK Group said that extremely high inflation not only worsens consumer sentiment, but also reduces the purchasing power of private households. Against this background, the purchasing propensity index fell by 2.6 points to -13.7 points, reaching the lowest value since October 2008.