The GfK Consumer Climate Indicator for Germany dropped to -22.0 heading into September 2024 from a revised -18.6 in the previous period, missing market estimates of -18.0. It was the lowest reading since May, dragged by concerns about job security, a rise in corporate insolvency, and a weak economy. Income expectations deteriorated sharply (3.5 vs 19.7 in August), notching their lowest in nearly two years. Also, economic prospects plunged (2.0 vs 9.8), and the propensity to buy fell further (-10.9 vs -8.4). At the same time, the tendency to save rose. “… the euphoria from the European Football was only a brief flare-up and disappeared after a tournament ended,” said Rolf Bürkl, consumer expert at NIM. He elaborated that a higher jobless rate, increased bankruptcies, and plans to cut staff by various companies have increasingly caused household worries, making a turnaround in consumer sentiment unlikely. “Hopes for a stable and sustainable economic recovery must be postponed further.
Source: Trading Economics
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