German Consumer Sentiment Drops to Lowest Level Since May

A new GfK report highlights growing pessimism about income and job security as economic challenges persist.

The GfK consumer sentiment index for December fell to -23.3 points, marking its lowest level since May 2024.
The drop follows a revised November reading of -18.4, reflecting a significant decline in consumer confidence.
Key factors include fears of job losses, rising insolvencies, and reports of industrial job cuts by major companies like Volkswagen and Bayer.
Income expectations have plummeted to a nine-month low, while willingness to make major purchases has also decreased.
This marks the fourth consecutive decline in economic expectations, aligning with projections of a 0.2% economic contraction for 2024.