Germany Gfk consumer sentiment. for July dropped from -26.2 to -27.4, better than expectation of -27.7. But that’s nonetheless another record low since 1991.
In June, economic expectations dropped from -9.3 to -11.7. Consumers continue to see a significant risk of recession in Germany. Income expectations dropped from -23.7 to -33.5, worst reading in almost 20 years. Propensity to buy dropped from -11.1 to -13.7, worst since 2008.
“The ongoing war in Ukraine and disruptions in supply chains are causing energy and food prices in particular to skyrocket, resulting in a gloomier consumer climate than ever before”, explains Rolf Bürkl, GfK consumer expert. “Above all, the increase in the cost of living, which is almost eight percent at present, is weighing heavily on consumer sentiment and sending it into a downward spiral.”