German consumer morale set to gain momentum in May

ANKARA

Consumer morale in Germany is expected to gain momentum in May, marking the seventh consecutive month of improvement, according to data released on Wednesday.

Market researcher GfK is forecasting minus 25.7 points for consumer sentiment in May, up 3.6 points from April, with both economic and income expectations, along with propensity to buy, set to rise.

The upswing was mainly driven by more moderate energy prices and the government’s energy relief plans for households and businesses.

Despite the significant increase, the figure still remains below pre-pandemic levels of around three years ago, said Rolf Burkl, a consumer expert for Nuremberg-based GfK.

“On another positive note, income expectations have risen for the seventh time in a row, returning to the level prior to the start of the war in Ukraine for the first time,” he noted.

Income expectations and economic conditions increased to minus 10.7 and 14.3, respectively.

According to GfK, Europe’s largest economy is likely to stagnate this year.​​​​​​​​​​​​​​