The survey results published by GfK Group and the Nuremberg Institute for Market Decisions (NIM) showed that the forecast consumer sentiment index for May rose to -20.6 points from -24.3 points in April (revised from -24.5 points). Thus, the index reached its highest level since November 2024. Economists had expected a decline to -26.0 points.
"The realignment of the US administration's trade policy, which began with the announcement of sharp tariff increases shortly before the start of the survey in early April, has apparently not yet had lasting impacts on consumer sentiment in Germany. Any negative effects are likely to be mitigated by the successful conclusion of coalition negotiations and the imminent formation of a fully functioning government,“ said Rolf Bürkl, consumer expert at NIM.
GfK said that in April, the willingness to save component fell by 5.4 points to 8.4 points. Meanwhile, the income expectations component increased by 7.4 points to 4.3 points. Its highest level since October 2024. However, there is still a decrease of 6.4 points compared with April 2024. The willingness to buy component increased by 3.3 points to -4.9 points. Compared to the same period last year, this represents an increase of 7.7 points. Meanwhile, the economic expectations indicator rose by 0.3 points to 7.2 points (the highest value since July 2024). Compared with the same period last year, the increase is 6.5 points. Thus, despite the uncertain developments in the stock markets caused by the U.S. administration’s trade policies, German consumers' economic expectations remain resilient. At the same time, growth forecasts for this year have been revised downwards once again.