Germany's consumer business climate index is at a high level for the first time in over 2 years

Germany's GfK consumer business climate index for 2024/8 was -18.4, slightly revised from -21.6 in the previous fiscal year, and exceeded market expectations of -21.0.

This is a high level since 2022/4, and expectations for income reached a high level for the first time in about 3 years (19.7 compared to 8.2 in July).

Also, expectations for the economy (9.8 vs. 2.5) and purchasing trends (8.4 vs. 13.0) also rose.

Meanwhile, savings propensity remained almost flat and did not contribute to an improvement.

Rolf Bürkle, a consumer expert at NIM, said, “There is a high possibility that European Championship fervor... played a part here.”

However, he added that it is still unclear whether this effect is sustainable or just a short-term flare-up.

Source: GfK Group