Germany’s GfK Consumer Climate Indicator slightly declined to -20.3 as we approached July 2025, down from a slightly revised -20.0 in June. This marks the first decline over the past four months and fell short of market expectations, which predicted a -19.3 reading. The inclination to save reached a 13-month peak, moving to 13.9 from 10.0, while the willingness to make purchases remained low at -6.2 compared to -6.4 previously. However, economic outlook improved, rising to 20.1 from 13.1—the highest level since the onset of the Ukraine conflict in February 2022—propelled by forthcoming government investments in defense and infrastructure. For the fourth consecutive month, income expectations rose to 12.8 from 10.4, aided by favorable wage negotiations and decreasing inflation. According to Rolf Bürkl, a consumer specialist at NIM, “A strong propensity to save reflects ongoing uncertainty and a lack of stability in planning,” which adversely impacts significant purchases. The report also highlights apprehension due to uncertainty surrounding U.S. trade policies.
The material has been provided by InstaForex Company – www.instaforex.com
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