Consumer Sentiments in Germany Projected to Hit Historic Low in May, Analytical Group Predicts
"Consumer confidence in Germany deteriorated significantly in April for the second month in a row. Both economic and income expectations along with the propensity to buy have noticeably declined. As a result, GfK is forecasting -26.5 points for the consumer sentiment in May, a decrease of 10.8 points from April of this year (revised from -15.7 points)", GfK said in a press released.
"High inflation rates are melting away consumers’ purchasing power. As a result, income expectations dropped to -31.3 points in April. This is 9.2 points lower than in March", GfK said.
"The war in Ukraine and rates of high inflation have dealt a severe blow to consumer sentiment. This means that hopes of a recovery from the easing of pandemic-related restrictions have finally been dashed. There will only be a sustainable trend shift in consumer sentiment if there are successful peace negotiations on the war in Ukraine", GfK consumer expert Rolf Burkl explained.