The GfK Consumer Climate Indicator for Germany rose to -18.3 heading into November 2024 from a marginally revised -21.0 in the previous period.
German consumer morale beats estimates
It was the highest reading since April 2022, with sentiment improving for the second month and exceeding market expectations of -20.5. Income expectations strengthened (13.7 vs 10.1 in October) and the propensity to buy reached its highest level in near three years (-4.7 vs -6.9), both advancing for the second month running. In addition, the tendency to save declined slightly. However, economic prospects declined for the third month (0.2 vs 0.7), following a downward revision of economic growth this year.
Anlysts comment
"Despite this improvement, the consumer climate remains very low," said Rolf Bürkl, a consumer expert at NIM. He noted that uncertainties from crises, wars, and high prices continue to curb consumption. Meanwhile, a rise in company insolvencies, plans for job cuts, and intentions to relocate production abroad also weigh on consumer sentiment.
