German consumer sentiment is expected to rise slightly in June after falling to a record low in May, but high inflation and the war in Ukraine continue to weigh on household spending.
- The GfK institute stated its consumer sentiment index increased slightly to -26.0 points heading into June after reaching a revised all-time low of -26.6 points in May.
- Rolf Buerkl GfK consumer expert, stated that the consumer climate may have improved slightly, but consumer sentiment is still at an absolute low.
- Buerkl further stated that despite the easing of COVID-related restrictions, the Ukraine war, and above all, the high inflations are weighing significantly on the mood of consumers.
Last month, Germany’s economy ministry lowered its economic growth outlook for 2022 to 2.2% from 3.6% and projected that inflation this year could hit 6.1%.
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Source: GfK
