German consumer sentiment to deteriorate in September - GfK

27th Aug 2024 07:18

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

The consumer sentiment index fell to -22 from a revised -18.6 in August, coming in below expectations for a reading of -18.2.

Rolf Buerkl, consumer expert at NIM, said: "Apparently, the euphoria of German consumers triggered by the European Football Championship was only a brief flare-up and faded after the end of the tournament.

"In addition, negative news about job security is making consumers more pessimistic and a fast recovery in consumer sentiment seems unlikely."

He said that slightly rising unemployment rates, an increase in corporate insolvencies and staff reduction plans at various companies in Germany are causing employees to worry about their jobs.

"Hopes for a stable and sustainable economic recovery must therefore be further postponed," Buerkl added.