Consumer sentiment in Germany unexpectedly declined.

The GfK consumer sentiment index in Germany decreased from a revised value of -18.6 in the previous period to -22.0 towards September 2024, falling below the market expectation of -18.0.

This is the lowest level since May, dragged down by concerns about stable employment, increasing debt levels, and economic downturn.

Expectations for income deteriorated significantly (from 19.7 in August to 3.5), marking the lowest level in about 2 years.

Additionally, economic outlook plummeted (from 2.0 to 9.8), and willingness to make purchases further declined (-10.9 to -8.4).

At the same time, the savings trend increased. Consumer expert Rolf Bürkler from NIM said, "The enthusiasm of the European Football Championship was short-lived, fading away after the end of the tournament."

"The rising unemployment rate, increasing number of bankruptcies, and various companies' workforce reduction plans have increased household concerns, making it difficult to anticipate an improvement in consumer sentiment," he elaborated.

"Expectations for a stable and sustainable economic recovery must be further delayed."

Source: GfK Group