German consumer confidence stabilises, but uncertainty remains

(Sharecast News) - Consumer confidence in Germany has stabilised at a low level as sentiment was supported by the recent elections, though rising preferences to put money away still indicate a cautious attitude. In the first survey since Germany's parliamentary elections, the forward-looking consumer climate index, published by GfK and the Nuremberg Institute for Market Decisions (NIM), inched higher to -24.5 for April, up from -24.6 in March.

This missed the consensus forecast of -23.0.

The data showed that consumers' economic and income expectations both improved, as well as their willingness to buy.

However, this was partially offset by an increase in the willingness to save indicator, which rose by 4.4 points to 13.8 - its highest since April 2024.

"Apparently, the elections and the prospect of a new government have lessened pessimism among a number of consumers. However, the renewed rise in the willingness to save is clouding the overall picture. It prevents a stronger improvement in the consumer climate," said Rolf Bürkl, consumer expert at the NIM.

"The high willingness to save can still be seen as an expression of considerable uncertainty among consumers. A fast formation of a government and the early adoption of a budget for this year would be an important factor for more planning security - not only for companies, but also for private households. Because then they would be more willing to spend money again and stimulate consumption."