Consumer confidence in Germany is expected to rise slightly in June, although it remains in recession after falling to a record low last month, as inflation and the war in Ukraine put a heavy strain on households.
The consumer climate index of the research company GfK, predicts that confidence will improve to -26 points from -26.6 points in May.
“Although this means that the consumer climate has improved slightly, consumer sentiment is still at an all-time low,” said GfK’s Rolf Buerkl.
The company uses the data of three indicators from the current month to export a number for the next month, recording the financial expectations of consumers, income expectations and the trend for purchases.
After two months of significant decline, economic expectations recovered slightly in May, to -9.3 points from -16.4 points in the previous month.
Although economic expectations did not fall further in May, consumers continue to fear a recession.
“Supply chain problems and the lack of semiconductors are currently preventing a continued recovery in large parts of the German economy,” the report said.
After income expectations plummeted to their lowest level in 20 years last month, they are now recovering somewhat.
This indicator rose to -23.7 points from -31.3 points in April.
As a result of weak economic and income expectations, consumer spending also remains significantly lower, with the trend for markets remaining virtually unchanged at -11.1 points in May, compared to -10.6 points in April.
Source: Capital
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