Germany Gfk consumer sentiment for May dropped to a historic low of -23.7, down from April’s 2.3. Economic expectations dropped further from -19.2 to -21.4. That was slightly better than the lowest reading of -26 recorded in May 2009. Income expectations, on the other hand, plunged from 27.8 to -19.3. A higher monthly loss in income expectations has never been recorded since monthly data collection on consumer sentiment began in 1980.
“Given that the economy is largely frozen, this unprecedented cliff dive is hardly surprising. Retailers, manufacturers and service providers must prepare for a tough recession in the immediate future,” explains Rolf Bürkl, GfK Consumer Expert. “Since it now seems evident that the easing of the COVID-19 containment measures will be very slow in order to take a cautious approach, the consumer climate can expect to face tough times in the coming months too.”
