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19h ago

German Consumer Confidence Rises as Business Uncertainty Reaches Multi-Year High

Consumer sentiment improves for the second consecutive month, driven by income and purchase optimism, while industrial firms struggle with record forecasting challenges.

Die Sparneigung sinkt, die Konsumlust steigt: Eine Frau im Supermarkt
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Overview

  • The GfK consumer climate index climbed by 3.7 points to -20.6, marking its second consecutive monthly increase.
  • Income expectations rose by 7.4 points to 4.3, the highest level since October 2024, alongside a 3.3-point gain in purchase propensity to -4.9.
  • Savings inclination dropped by 5.4 points to 8.4, indicating a shift toward greater consumer spending potential.
  • A record 28.3% of German companies reported difficulty forecasting their business development in April, with industrial firms most affected at 38.7%.
  • The conclusion of Union-SPD coalition talks boosted consumer optimism, counterbalancing concerns over US-EU trade tensions and tariff increases.