Brandenburg Gate in Berlin, Germany

Germany Consumer Confidence July 2023

Germany: Consumer sentiment expected to fall in July

The GfK consumer climate index is forecast to fall to minus 25.4 in July from minus 24.4 in June, which would mark the first fall in eight months.

The expected downtick in sentiment follows the revision of backward-looking data for June, which is released simultaneously and underpins the July expectation.

Looking at the June data, for the year ahead, consumers became less confident about the economy and more pessimistic about their personal finances. More positively, consumers became less pessimistic about their spending intentions in the year ahead. Stubbornly high inflation and rising interest rates likely weighed on consumer sentiment amid reduced purchasing power.

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