In a modest uptick, Germany’s GfK Consumer Sentiment Index for April has slightly improved to -27.4 from March’s -28.8, marginally above expectation of -27.8. March’s data revealed an improvement in economic expectations and income outlooks, with the former rising to -3.1 from -6.4 and the latter to -1.5 from -4.8. However, the willingness to make purchases marginally declined from -15.0 to -15.3, and the propensity to save saw a notable drop from 17.4 to 12.4.
Rolf Bürkl, consumer expert at NIM, characterized the recovery in consumer sentiment as “slow and very sluggish.” He pointed to the fundamental pillars of real income growth and a stable job market as underpinning factors that could potentially catalyze a swift rebound in consumer sentiment.
However, the prevailing atmosphere of uncertainty and a discernible lack of future optimism among consumers is holding sentiment back. This sentiment, according to Bürkl, is stifled by the ongoing array of crises, manifesting in a pronounced reluctance to make purchases despite objectively favorable economic conditions.
“In a nutshell: The poor sentiment is overshadowing the facts,” Bürkl noted.
Full German Gfk consumer sentiment release here.
