Consumer mood in Germany almost unchanged in May - GfK

According to the report from GfK Group, the mood among consumers appears only slightly changed in May 2019. While income expectations improved slightly, economic outlook and propensity to buy declined somewhat. For June, GfK is predicting a consumer climate value of 10.1 points, following a revised May figure of 10.2 points. Economists had expected an increase to 10.4 points.

The steep downward spiral of the economic outlook has continued in May. However, it has significantly reduced its speed. The indicator fell to 1.7 points following a comparatively small loss of 1.3 points. The economic outlook has therefore lost almost 32 points within a twelve-month period.

Contrary to the weakening economic outlook, income expectations among consumers continue to remain largely stable at an already very high level. The indicator rose by 0.9 points and now stands at 57.7 points. It is also five points higher than at the same time last year. The gap between economic and income expectations has therefore widened again.

In contrast to the economic outlook, propensity to buy has suffered moderate losses in May. Following a decrease of 2.6 points, the indicator currently stands at 50.5 points. It was therefore forced to concede part of the gains it recorded in the previous month. The continuing high level of propensity to buy proves that the mood among consumers remains unchanged. This is very positive news in light of the general economic uncertainty. This optimism is most certainly due in part to the good and stable situation on the job market.