German consumer sentiment improves in May but still weighed by uncertainty, GfK survey shows
The consumer sentiment index, published by the GfK market research institute and the Nuremberg Institute for Market Decisions (NIM), remained firmly in negative territory at -20.6 points, up from a slightly revised -24.3 points the month before.
Analysts polled by Reuters had expected sentiment to rise to -26.0 points.
Both income expectations and the willingness to buy showed noticeable increases, while economic expectations improved only slightly, according to the survey.
"The realignment of the U.S. administration's trade policy, which began with the announcement of sharp tariff increases shortly before the start of the survey in early April, has apparently not yet had lasting impacts on consumer sentiment in Germany," said Rolf Buerkl at the NIM.
"It is clearly more important to German consumers at present that a government will be formed quickly," he added.
Conservative chancellor-in-waiting Friedrich Merz is expected to be sworn in on May 6 to lead a coalition government tasked with hauling the beleaguered German economy out of a protracted recession even as the tariff conflict deals a fresh blow to its export-driven industry.
MAY 2025 APR 2025 MAY 2024
Consumer climate -20.6 -24.3 -24.0
Consumer climate components APR 2025 MAR 2025 APR 2024
- willingness to buy -4.9 -8.2 -12.6
- income expectations 4.3 -3.1 10.7
- willingness to save 8.4 13.8 14.9
- economic expectations 7.2 6.9 0.7
NOTE - The survey period was from April 3 to 14.
The consumer climate indicator forecasts the progress of real private consumption in the following month.
An indicator reading above zero signals year-on-year growth in private consumption. A value below zero indicates a drop compared with the same period a year earlier.
According to GfK, a one-point change in the indicator corresponds to a year-on-year change of 0.1% in private consumption.
The "willingness to buy" indicator represents the balance between positive and negative responses to the question: "Do you think now is a good time to buy major items?"
The income expectations sub-index reflects expectations about the development of household finances in the coming 12 months.
The additional business cycle expectations index reflects respondents' assessment of the general economic situation over the next 12 months.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
an hour ago
- Reuters
Gold falls to near two-week low after US, EU agree to tariff deal
July 28 (Reuters) - Gold prices fell to their lowest level in nearly two weeks on Monday, as a framework trade agreement between the United States and European Union ahead of the August 1 tariff deadline boosted appetite for risk assets. Spot gold was down 0.1% at $3,332.18 per ounce, as of 0208 GMT, after touching its lowest level since July 17. U.S. gold futures edged 0.1% lower to $3,331.60. The U.S. struck a framework trade agreement with the European Union on Sunday, imposing a 15% import tariff on most EU goods - half the threatened rate - and averting a bigger trade war between the two allies that account for almost a third of global trade. However, the agreement left key issues unresolved, including tariffs on spirits. The agreement eased transatlantic trade tensions, putting pressure on gold, said Jigar Trivedi, a senior commodity analyst at Reliance Securities, adding that it also softened the dollar index, which provided some cushion to bullion. The U.S. dollar index (.DXY), opens new tab eased 0.1%, making greenback-priced bullion more affordable for overseas buyers. Risk sentiment improved following the agreement, with European currencies and U.S. stock index futures trading higher. Meanwhile, senior U.S. and Chinese negotiators are set to meet in Stockholm later in the day to address long-standing economic disputes, seeking to extend a truce that has prevented higher tariffs. "In the short term, we don't expect gold to experience wild swings. Investors are turning their focus to a pivotal week for U.S. monetary policy and economic data," Trivedi said. The Federal Reserve is expected to maintain its benchmark interest rate in the 4.25%-4.50% range after its two-day policy meeting concludes on Wednesday. U.S. President Donald Trump said on Friday he had a positive meeting with Powell, suggesting the Fed chief might be inclined to lower interest rates. Spot silver was up 0.2% at $38.23 per ounce, while platinum gained 0.6% to $1,409.50 and palladium rose 0.6% to $1,227.76.
Reuters
3 hours ago
- Reuters
Samsung Elec signs $16.5 billion contract to supply semiconductors
SEOUL, July 28 (Reuters) - Samsung Electronics ( opens new tab said on Monday it has signed a contract valued at $16.5 billion to supply semiconductors to a major global corporation, in a regulatory filing. It did not name the counterpart. Samsung Electronics declined to comment on the contract. ($1 = 1,383.6800 won) ($1 = 1,383.6800 won)
Metro
8 hours ago
- Metro
Donald Trump strikes tariff deal with EU avoiding trade war
President Donald Trump has announced a deal with the EU that will avert a spiralling trade war between the blocs. The deal, which includes a 15% tariff on EU goods entering the US and significant EU purchases of US energy and military equipment, will bring clarity after weeks of negotiations. The deal also calls for $600 billion in investments in the US by the European Union, he told reporters. But many in Europe could see the deal as a poor outcome compared to the initial ambition of a zero-for-zero tariff deal, although it is better than the threatened 30% rate. The announcement came after European Commission President Ursula von der Leyen travelled to Scotland for talks with Trump to push a hard-fought deal over the line for the blocs that make up almost a third of global trade. Ursula von der Leyen on Sunday said a U.S. baseline tariff rate of 15% on imported EU goods would apply to cars, semiconductors and pharmaceutical goods. She also said that a zero-for-zero tariff rate had been agreed for certain strategic products, including aircraft and aircraft parts, certain chemicals, and certain generic drugs. No decision had been taken on a rate for wine and spirits, she added. 'Today's deal creates certainty in uncertain times, delivers stability and predictability,' von der Leyen told reporters before leaving Scotland. German Chancellor Friedrich Merz said: 'This agreement has succeeded in averting a trade conflict that would have hit the export-orientated German economy hard. 'This applies in particular to the automotive industry, where the current tariffs of 27.5% will be almost halved to 15%.' Trump, who is seeking to reorder the global economy and reduce decades-old trade deficits, has so far reeled in agreements with Britain, Japan, Indonesia and Vietnam, although his administration has failed to deliver on a promise of '90 deals in 90 days.' Trump has periodically railed against the European Union saying it was 'formed to screw the United States' on trade. It took only a few minutes after stepping off Air Force One for Trump to begin predicting doom for the West due to immigration. He told reporters: 'On immigration, you better get your act together. You're not going to have Europe anymore, you've got to get your act together.' MORE: Man shouting 'death to Trump' tackled by passengers on EasyJet flight to Glasgow MORE: Prince Andrew among 100 people who could be dragged into Epstein scandal MORE: Trump touches down in Scotland for unofficial visit
