Germany: Consumer confidence expected to remain virtually unchanged in June
May 28, 2019
German consumer confidence is expected to inch down to 10.1 in June from 10.2 in May, according to the forward-looking GfK Group Consumer Climate Index. Meanwhile, backward-looking data for May showed diverging trends in the underlying components of the index.
Economics expectations continued to moderate noticeably in May. This was linked to slowing global growth, ongoing Brexit mystery, and lingering trade tensions with a risk of escalation. On the other hand, income expectations rose in the same month as the German labor market remains in a strong position and drives up wages, which is also benefiting pensioners as pensions are linked to wage developments. This is also keeping Germans’ propensity to buy at an elevated level, although their willingness to part ways with their cash eased slightly in May.
Author: Jan Lammersen, Economist