German Consumer Sentiment To Improve Moderately In June

(RTTNews) - German consumer confidence is set to improve moderately to a seven-month high in June driven by strengthening economic and income expectations but overall level remained weak, a closely watched survey revealed Tuesday.

The consumer climate indicator rose to -19.9 in June from -20.8 in the previous month, a survey jointly published by the market research group GfK and the Nuremberg Institute for Market Decisions showed.

The indicator improved for the third straight month in June and hit the highest since November 2024.

"The unpredictable customs and trade policy of the US government, turbulence on the stock markets and fears of a third consecutive year of stagnation are reasons why the consumer climate remains weak," NIM Consumer Expert Rolf Burkl said.

The survey showed that the fall in willingness to buy and the rising willingness to save offset the noticeable growth in income and economic prospects.

Following a sharp fall in April, the savings indicator rose 1.6 points to 10.0 in May.

Underpinned by good wage settlements and a slight slowdown in inflation, income expectations strengthened sharply in April. The income expectations index rose 6.1 points to 10.4, the highest since October 2024.

However, the willingness to buy failed to gain from the improvement in income prospects. Employees were worried about job security amid heightened uncertainty over the trade policies of the US and rising unemployment.

Consequently, the willingness to buy sub-index slid 1.5 points to -6.4 in May.

Economic expectations among consumers strengthened fourth straight month in May. The corresponding index rose 5.9 points to 13.1.

Although expectations about future economic developments remained optimistic, it remains to be seen whether this optimism is justified, GfK said.