According to GfK, German economic and income expectations have increased significantly and the propensity to buy has risen moderately, meaning consumer confidence in the country is enjoying tailwind again this month.
Consumers in Germany are confident that the national German economic climate is on the right path in the coming months, as shown by the noticeable increase in economic expectation in April. The increasing German economic optimism as well as a more moderate increase in prices means that the income prospects of German citizens, which were already at a high level, have increased even further. The propensity to buy has also increased by around five points. The consumer climate index is predicted to jump to 10.2 points in May.
After a brief downturn in February, German consumers are once again much more positive about their economic prospects. The index has risen for the second time in a row and has gone up by a significant 12.4 points to reach 30.5. This is the highest value in almost two years. The last time the economic indicator was higher was in May 2015, when it stood at 38.3 points.
Despite the uncertainty surrounding the future economic and political direction of the new US President and the Brexit negotiations which are just beginning, German consumers believe that their own economy is nonetheless headed in the right direction. The moderate upturn will become more firmly established. This can also be seen in the very positive employment situation, which will improve even further this year according to most experts.
The GfK Consumer Climate MAXX study is based around 2,000 consumer interviews per month conducted on behalf of the European Commission. This report presents the indicators in graphical form and provides predictions and detailed comments on the indicators. It also provides information on consumer spending plans for 20 areas in the consumer goods and services markets. The GfK Consumer Climate Study has been carried out since 1980.