German consumer sentiment set to improve - GfK

29th Oct 2024 07:55

(Sharecast News) - German consumer sentiment is expected to improve in November, according to a survey released on Tuesday by GfK and the Nuremberg Institute for Market Decisions (NIM).

The forward-looking consumer climate index for November is expected to rise by 2.7 points to -18.3 from October's revised -21.0. This is the highest level since April 2022, although the level of consumer climate remains low.

Rolf Buerkl, consumer expert at NIM, said: "Following the slight improvement in the previous month, the Consumer Climate continues to improve. It has climbed to its highest level since April 2022, when -15.7 points were measured after the start of the war in Ukraine.

"But despite the increase, the level of consumer climate remains very low. The uncertainty caused by crises, wars and rising prices is still very much present and is preventing factors that encourage consumption, e.g. the real income growth, from taking full effect.

"Reports of a rising number of company insolvencies and plans to cut jobs or relocate production abroad are also preventing a more significant recovery in consumer sentiment."