Consumer sentiment in Germany is deteriorating: the confidence index is falling again

As of August, the consumer confidence index for the German economy fell to minus 21.5 points, compared with minus 20.3 points in July, according to GfK data. Analysts' forecast expected an improvement to minus 19.2 points. 

The index of wage growth expectations, on the contrary, rose to 15.2 points from 12.8 points a month earlier, which was the highest level since July last year, when the indicator was 19.7 points. However, consumers' propensity to shop decreased to minus 9.2 points from minus 6.2 points in July.

At the same time, the index of current economic expectations fell from 20.1 points to 10.1 points. This dynamic reflects the continuing uncertainty in the economy.

Experts note that the recovery of consumer sentiment continues to be delayed. Increased propensity to save, general uncertainty, and high food prices remain key causes of this phenomenon.