The survey results published by GfK Group and the Nuremberg Institute for Market Decisions (NIM) showed that the forecast consumer sentiment index for January rose to -21.3 points from -23.1 points in December (revised from -23.3 points). Economists had expected growth to -22.5 points.
"Consumer sentiment has improved slightly, but only partially offsetting the December decline. At -21.3 points, the consumer climate remains at a very low level. Looking back, we have just seen stagnation since mid-2024. A sustained recovery in consumer sentiment is not yet in sight, as consumer uncertainty is still too high. The main reason is high food and energy prices. In addition, concerns about job security are growing in many sectors” said Rolf Bürkl, consumer expert at NIM.
GfK said that in December, the willingness to save component fell by 6.0 points to 5.9 points. Meanwhile, the income expectations component increased by 4.9 points to 1.4 points, but remains significantly lower than it was in the summer of this year. Downward revisions in growth forecasts and rising unemployment figures are currently preventing a significant recovery in income expectations. The willingness to buy component increased by 0.6 points to -5.4 points. This makes up for about half of the losses from the previous month. Compared with the same period last year, the indicator has risen by more than three points. Meanwhile, the economic expectations indicator added 3.9 points, to 0.3 points, roughly the same as last year's level. Although the downward trend in economic sentiment has been stopped for the time being, consumers do not yet see any signs of a sustained economic recovery.