German consumer sentiment expected to show slight recovery in June

ISTANBUL

Consumer sentiment in Germany is projected to see a modest improvement in June, though overall confidence remains low amid ongoing global and domestic economic uncertainty, market research firm GfK said Tuesday.

GfK forecast Germany’s consumer climate index at minus 19.9 points for June, a 0.9-point rise from May’s revised figure of minus 20.8.

"The level of consumer sentiment remains extremely low, and consumer uncertainty remains high," said Rolf Burkl, consumer expert at the Nuremberg Institute for Market Decisions (NIM), which compiled the data.

Burkl attributed the weak sentiment to several factors, including the unpredictable trade policies of the US government, stock market turbulence, and fears of a third consecutive year of economic stagnation.

"In view of the general economic situation, people seem to think it advisable to save," he added.

The income expectations index rose by 6.1 points in May to minus 10.4, the highest level recorded since October 2024. Economic expectations also improved, gaining 5.9 points to 13.1 — the highest reading in two years.

Despite those gains, the willingness to buy slipped by 1.5 points to minus 6.4 in May, suggesting that households remain cautious with discretionary spending.

“Uncertainty caused by the US government's unpredictable customs and trade policy and a rise in unemployment, which is causing many employees to worry about their own jobs, is continuing,” the report added.