The survey results published by GfK Group and the Nuremberg Institute for Market Decisions (NIM) showed that the forecast consumer sentiment index for August rose to -18.4 points from -21.6 points in July (revised from -21.8 points). The latest reading was the highest since March 2022. Economists had expected an increase to -21.0 points.
"The growth in consumer confidence was mainly driven by increased income expectations. However, the euphoria caused by the European Football Championship in Germany among many segments of the population also probably played a role. However, it remains to be seen whether this effect is sustainable or just a short-term improvement. For a sustained improvement in consumer sentiment, it is necessary – in addition to the current growth in real incomes – for consumers to regain confidence in planning, which is necessary, in particular, for large purchases by households," said Rolf Bürkl, consumer expert at NIM.
GfK said that in July, the willingness to save component remained unchanged. Meanwhile, the income expectations component rose by 11.5 points to 19.7 points (the highest value since October 2021). Compared to the same period last year, the index rose by almost 25 points. The willingness to buy component increased by 4.6 points to -8.4 points. The last time a better value was measured was more than two years ago, in March 2022, at -2.1 points. Meanwhile, the economic expectations indicator rose by 7.3 points, to 9.5 points. This corresponds exactly to the value from May 2024. According to experts, the economic recovery will accelerate in the coming year. For 2004 only weak growth in GDP is expected.