(Finance) – Expected improvement German consumer confidence in the month of June 2024. The GFK index, based on the survey conducted this month, highlights a value of -20.9 points, compared to -24 in May (data revised from a preliminary of -24.2). The reading is better than analysts’ expectations who estimated a rise in sentiment up to -22.5 points.
They improve expectations about the economic situation, with the indicator rising by 9.1 points to +9.8. The indicator on the propensity to purchase grew by 0.3 points and stood at -12.3 points. The one on income expectations rises by 1.8 points and stands at +12.5 points.
“The decline in inflation rates combined with significant wage increases strengthens the purchasing power of consumers. This stimulates income expectations and also reduces consumer uncertainty, which was responsible for the relatively high willingness to save in the previous months – explains Rolf Bürkl, consumer expert at NIM – However, there still seems to be uncertainty among German consumers. This is due to the lack of clear future prospects in the country, which undermines planning certainty when purchasing. People will have to regain this certainty before they are willing to invest their growing purchasing power in larger purchases.”