The survey results published by GfK Group and the Nuremberg Institute for Market Decisions (NIM) showed that the forecast consumer sentiment index for September fell to -22.0 points from -18.6 points in August (revised from -18.4 points). The latest reading was the lowest in 5 months. Economists had expected an increase to -18.3 points.
"Apparently, the euphoria of German consumers caused by the European Football Championship was only short-lived and faded after the end of the tournament. In addition, negative news about job security is making consumers more pessimistic and a fast recovery in consumer sentiment seems unlikely. A slight increase in the unemployment rate, an increase in corporate bankruptcies and plans to cut staff in various German companies are making employees worry about their jobs. Therefore, hopes for a stable and sustainable economic recovery should be postponed even more," said Rolf Bürkl, consumer expert at NIM.
GfK said that in August, the willingness to save component increased by 2.7 points. Meanwhile, the income expectations component fell by 16.2 points to 3.5 points. The last time income expectations fell more sharply within a month was in September 2022. The willingness to buy component decreased by 2.5 points to -10.9 points. Compared to the same period last year, there is still an increase of 6 points. Meanwhile, the economic expectations indicator fell by 7.8 points, to 2.0 points. A weakening economy, job reduction plans in German industry, a rise in insolvency figures and an increasing risk of recession unsettle consumers and increase economic pessimism for the coming 12 months.