German Consumer Sentiment Seen Deteriorating Further in March – GfK

A survey published on Wednesday by the Nuremberg-based market research institute GfK indicated that German consumer sentiment is expected to deteriorate further in March, as households remain cautious amid a challenging geopolitical backdrop and ongoing concerns over government social policies.

The consumer sentiment index declined to -24.7 points for March, down from a revised -24.2 in February, and fell short of market expectations for an improvement to -23.1.

Among the index components, a sharper-than-anticipated drop in consumers’ willingness to buy exerted the greatest downward pressure, with the February reading slipping to -9.3 from -4.0 in January. At the same time, the willingness to save increased notably, rising to 18.9 from 17.9, further weighing on overall sentiment.

Germany’s economy continues to face headwinds, as geopolitical uncertainty, elevated operating costs, and subdued domestic demand constrain business activity, despite tentative indications that the recovery may be gradually stabilizing.