German consumers’ faith in the economy has declined

German consumers’ confidence in the country’s economic recovery has declined after rising for four consecutive months.

According to the survey published by GfK and the Nuremberg Institute for Market Decisions (NIM), the forward-looking consumer climate index for Germany revealed that confidence will drop from minus 21.0 this month to minus 21.8 in July.

In the Wall Street Journal’s survey, confidence was expected to rise to minus 19.5.

“The interruption of the recent upward trend in consumer sentiment shows that the way out of serene consumption will be trouble and there can always be downturns,” said NIM consumer expert Rolf Buerkl.

Buerkl added that the increase in the inflation rate in Germany, which was 2.2% in April to 2.4% in May, caused more uncertainty among consumers, which meant that participants were more willing to save.

According to the data, both income and economic expectations have worsened and the purchasing tendency has decreased.

forex.com