German Consumer Sentiment To Fall In August

(RTTNews) - German consumer confidence is set to weaken in August due to lower income expectations and a greater willingness to save, latest results of the NIM Consumer Climate powered by GfK showed Friday.

The forward-looking consumer climate index fell unexpectedly to -29.6 in August from -29.3 in the previous month. The score was seen at -28.7.

After improving steadily over recent months, income expectations eased slightly once again. The indicator dropped 2.3 points to -14.5. Consumers took a pessimistic view of their financial situation over the coming twelve months.

The willingness to save rose 3.1 points to 17.0 in July. The reading is comparatively very high as people currently consider it advisable to save.

The willingness to buy index climbed moderately by 3.5 points to -9.9 in July. Although consumers currently regard the timing for major purchases as slightly more favorable, the score remained at a low level.

"Although the willingness to buy has risen moderately, it remains very subdued," NIM Head of Consumer Climate Rolf Burkl said.

"Income prospects have seen another slight decrease, whilst the willingness to save has picked up moderately once again. The ongoing uncertainty means that many households remain cautious about spending," said Burkl.

The economic expectations improved for the third straight month in July. The corresponding index climbed 2.4 points to -6.3. Pessimism continued to ease. Nonetheless, the majority of consumers expect the economic situation to fall over the next twelve months.

Consumers' price expectations increased in July with the expiry of the fuel subsidy at the end of June. The price expectations index rose to -2.1 from -2.9 in June.