- August consumer sentiment -29.6 vs -28.5 expected
- Prior -29.2; revised to -29.3
The German consumer climate remains gloomy heading into August as households remain cautious about spending amid more pessimism surrounding income expectations. While economic expectations may have improved (-6.3 from -8.7 previously), income expectations remain depressed (-14.5 from -12.2 previously). And the latter is still a cause of concern for German households at this stage, that especially with consumers being worried about how their finances will be impacted over the coming year.
The more cautious behaviour is also reflected in an increase in the willingness to save among households (17.0 from 13.9 previously). So, that tells a bit of the story that growing inflation pressures are also weighing on sentiment.
GfK/NIM notes that:
“Income prospects have seen another slight decrease, while the willingness to save has picked up moderately once again. The ongoing uncertainty means that many households remain cautious about spending.”
This article was written by Justin Low at investinglive.com.