Consumer confidence in Germany is expected to deteriorate sharply in April, falling to a 14-month low, as inflation and the war in Ukraine greatly affect household expectations for the economy and personal finances.
The future consumer climate index of the research company GfK, predicts that confidence will fall to -15.5 points in April from -8.5 points in March. The decline, which is largely in line with economists’ estimates, puts the index at its lowest level since February 2021.
“Increased uncertainty and sanctions against Russia have caused energy prices in particular to skyrocket, putting significant pressure on general consumer sentiment,” said GfK analyst Rolf Buerkl.
In February, there were hopes that the consumer climate would recover significantly as restrictions on the pandemic eased, but the start of the war in Ukraine dashed those hopes, Buerkl added.
GfK uses data from three indicators from the current month, to release a number for the next month, recording consumer financial expectations, income expectations and buying trends.
All three indices fell in March, according to the survey.
Source: Capital
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