The survey results published by GfK Group and the Nuremberg Institute for Market Decisions (NIM) showed that the forecast consumer sentiment index for February fell to -29.7 points from -25.4 points in January (revised from -25.1 points). The latest reading was the lowest since March 2023. Economists had expected the index to reach -24.5 points.
“If there were any hopes of a sustained recovery in sentiment, these were destroyed again in January. The consumer climate suffered a severe setback at the beginning of the year. In addition to the decline in income expectations and the willingness to buy, this is also due to consumers' willingness to save", - said Rolf Bürkl, consumer expert at NIM.
GfK said that in January willingness to save rose by 6.7 points to 14 points (the highest value since August 2008), while income expectations fell by 13.1 points to -20.3 points (lowest value since March 2023). One reason for the income pessimism is probably the fact that inflation has risen again slightly. The significant drop in income expectations also reduced consumers' willingness to buy: the indicator decreased by 6 points, to -14.8 points and is therefore almost at the level of November 2023 (-15.0). Meanwhile, the economic expectations indicator fell by 6.2 points, to -6.6 points (lowest value since December 2022).