Germany Gfk Consumer Sentiment for July rose to -9.6, up from -18.6, beat expectation of -11.0. Economic expectations rebounded strongly to 8.5, up from -10.4, back in positive territory. Income expectations also turned positive to 6.6., up from -5.7.
“The faint light at the end of the tunnel, which was already apparent last month, is apparently getting somewhat brighter,” explains Rolf Bürkl, GfK consumer expert. “The extensive support provided by the economic stimulus packages, such as the announcement of a temporary reduction in value-added tax (VAT), is certainly a contributing factor. Provided that retailers and manufacturers also pass these reductions on to consumers, it can be assumed that one or two planned purchases will instead be made in the second half of 2020, thereby supporting consumption this year.”
