German consumer sentiment remains nearly unchanged in April, reflecting ongoing uncertainty despite last month's election, according to a GfK and NIM survey. The index inched up slightly to -24.5 from -24.6, below analysts' expectations of -23.0.
While economic and income expectations improved, a rising inclination to save hinders a stronger recovery. "Elections have eased pessimism for some, but increased saving clouds the outlook," said Rolf Buerkl of NIM. He emphasized that swift government formation and budget approval would provide much-needed stability.
Conservatives, led by Friedrich Merz, are negotiating with the Social Democrats to form a government by late April, though key disagreements remain. Meanwhile, Germany's economy struggles, shrinking for a second consecutive year in 2024.
Income expectations improved in March, but purchasing willingness remains weak, even lower than during pandemic lockdowns, the survey found.