German consumer morale highest since April 2022

By Tuba Ongun

Consumer morale in Germany is expected to recover significantly to over two-year high in August, according to data released on Wednesday.

Market researcher GfK is foreseeing minus 18.4 points for consumer sentiment in August, up 3.2 points from July, with both economic and income expectations, as well as propensity to buy, set to improve.

The willingness to save, on the other hand, remains unchanged in the month.

It is likely that the European Football Championship (Euro 2024) euphoria played a role in the upswing, said Rolf Burkl, a consumer expert for Nuremberg-based GfK.

"However, it remains to be seen whether this effect is sustainable or just a short-term flare-up. As quickly as this good mood has occurred, it can also disappear again," he added.

Income expectations surged 11.5 points to 19.7 points, highest since October 2021 and economic conditions climbed by 7.3 points to 9.8 points.