The survey results published by GfK Group and the Nuremberg Institute for Market Decisions (NIM) showed that the forecast consumer sentiment index for April rose to -27.4 points from -28.8 points in March (revised from -29.0 points). Economists had expected an increase to -27.9 points.
“The recovery of the consumer climate is slow and very sluggish. Real income growth and a stable labor market create good conditions for a rapid improvement in consumer sentiment, but there's still a lack of planning security and optimism about the future among consumers. In times of multiple crises, a high degree of consumer insecurity combined with low confidence in Germany's economic development constrains the desire to buy. As a result, domestic demand is still not stimulating the economy. Thus, a sustainable recovery of the German economy is not yet expected. First of all, this will require reducing the high level of uncertainty among the population. But in order for this to happen, inflation in Germany must decrease, and there must be a clear political strategy for the country's development in the coming years," said Rolf Bürkl, consumer expert at NIM. “
GfK said that in March, the willingness to save component fell by 5.0 points to 12.4 points, but still remains extraordinarily high (this component was at just 1.3 points in the same period the previous year, which represents an increase of more than 11 points). Meanwhile, the income expectations component increased by 3.3 points to -1.5 points. A higher value was last seen in February 2022 – at +3.9 points. The slight increase in income optimism is primarily due to the development of wages and salaries. However, the willingness to buy component fell by 0.3 points to -15.3 points. This means that the willingness to buy remains at an extremely low level, which has already been recorded since mid-2022. Meanwhile, the economic expectations indicator rose by 3.3 points, to -3.1 points. Compared to the corresponding period in the previous year, this represents a drop of 6.8 points.