German consumer sentiment improves in May but still weighed by uncertainty, GfK survey shows
BERLIN, April 29 (Reuters) - German consumer sentiment improved further heading into May as the prospect of a new government appeared to soothe households, countering some of the uncertainty unleashed by tensions over import tariffs for now, a survey indicated on Friday.
The consumer sentiment index, published by the GfK market research institute and the Nuremberg Institute for Market Decisions (NIM), remained firmly in negative territory at -20.6 points, up from a slightly revised -24.3 points the month before.
Analysts polled by Reuters had expected sentiment to rise to -26.0 points.
Both income expectations and the willingness to buy showed noticeable increases, while economic expectations improved only slightly, according to the survey.
"The realignment of the U.S. administration's trade policy, which began with the announcement of sharp tariff increases shortly before the start of the survey in early April, has apparently not yet had lasting impacts on consumer sentiment in Germany," said Rolf Buerkl at the NIM.
"It is clearly more important to German consumers at present that a government will be formed quickly," he added.
Conservative chancellor-in-waiting Friedrich Merz is expected to be sworn in on May 6 to lead a coalition government tasked with hauling the beleaguered German economy out of a protracted recession even as the tariff conflict deals a fresh blow to its export-driven industry.
MAY 2025 APR 2025 MAY 2024
Consumer climate -20.6 -24.3 -24.0
Consumer climate components APR 2025 MAR 2025 APR 2024
- willingness to buy -4.9 -8.2 -12.6
- income expectations 4.3 -3.1 10.7
- willingness to save 8.4 13.8 14.9
- economic expectations 7.2 6.9 0.7
NOTE - The survey period was from April 3 to 14.
The consumer climate indicator forecasts the progress of real private consumption in the following month.
An indicator reading above zero signals year-on-year growth in private consumption. A value below zero indicates a drop compared with the same period a year earlier.
According to GfK, a one-point change in the indicator corresponds to a year-on-year change of 0.1% in private consumption.
The "willingness to buy" indicator represents the balance between positive and negative responses to the question: "Do you think now is a good time to buy major items?"
The income expectations sub-index reflects expectations about the development of household finances in the coming 12 months.
The additional business cycle expectations index reflects respondents' assessment of the general economic situation over the next 12 months.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
2 hours ago
- Reuters
Pakistan likely to hike defence spending but slash overall budget in 2025-26
ISLAMABAD, June 10 (Reuters) - Pakistan will unveil its annual federal budget for the coming fiscal year later on Tuesday, seeking to kickstart growth while finding resources for an expected hike in defence expenditure following the conflict with India last month. Islamabad will also have to contend with remaining within the discipline of its International Monetary Fund programme and the uncertainty from new trade tariffs being imposed by the United States, its biggest export market. Media reports say the government is likely to present a 17.6 trillion rupee ($62.45 billion) budget for the fiscal year beginning July 1, down 6.7% from this fiscal year. It has projected a fiscal deficit of 4.8% of GDP, against a targeted 5.9% deficit in 2024-25, the reports say. Analysts said they expect an increase of around 20% in the defence budget, likely offset by cuts in development spending. Pakistan allocated 2.1 trillion Pakistani rupees($7.45 billion) for defence in the outgoing fiscal year, including $2 billion for equipment and other assets. An additional 563 billion rupees ($1.99 billion) was set aside for military pensions, which are not counted within the official defence budget. India's defence spending in its 2025–26 (April-March) fiscal year was set at $78.7 billion, a 9.5% increase from the previous year, including pensions and $21 billion earmarked for equipment. It has indicated it will step up expenditure following the May conflict with Pakistan. The government of Pakistani Prime Minister Shehbaz Sharif has projected 4.2% economic growth in 2025-26, saying it has steadied the economy, which had looked at risk of defaulting on its debts as recently as 2023. Growth this fiscal year is likely to be 2.7%, against an initial target of 3.6% set in the budget last year. Pakistan's growth lags far behind the region. In 2024, South Asian countries grew by an average of 5.8% and 6.0% growth is expected in 2025, according to the Asian Development Bank. Expansion of the economy should be aided by a sharp drop in the cost of borrowing, the government says, after a succession of interest rate cuts by the central bank. But economists warn that monetary policy alone may not be enough, with fiscal constraints and IMF-mandated reforms still weighing on investment. Finance Minister Muhammad Aurangzeb said on Monday that he wanted to avoid Pakistan's boom and bust cycles of the past. 'The macroeconomic stability that we have achieved, we want to absolutely stay the course,' he said. 'This time around we are very, very clear that we do not want to squander the opportunity.' The budget is expected to prioritize expanding the tax base, enforcing agriculture income tax laws, and reducing government subsidies to industry, to meet the terms of a $7 billion IMF bailout signed last summer. Just 1.3% of the population paid income tax in 2024, according to the tax authorities, with agriculture and the retail sector largely outside of the tax net. The IMF has urged Pakistan to widen the tax base through reforms which include taxing agriculture, retail, and real estate. Ahmad Mobeen, senior economist at S&P Global Market Intelligence, said that he expected the revenue target for 2025-26 will be missed. 'The shortfall will mostly be owing to lack of optimal implementation of announced measures as well as absence of meaningful structural reforms to widen the tax net in general,' said Mobeen. ($1 = 281.8400 Pakistani rupees)
Daily Mirror
2 hours ago
- Daily Mirror
5 Liverpool stars at risk of exit once Florian Wirtz and Milos Kerkez arrive
Florian Wirtz could set Liverpool back around £118m if he arrives at Anfield this summer and the club's spending could hit around £200m at this early stage, meaning they will be forced to sanction some outgoings Liverpool will be forced to balance the books this summer should they complete lucrative deals for Florian Wirtz and Milos Kerkez, who are the club's top transfer targets. The Reds are being quoted around £118million by Bayer Leverkusen for German playmaker Wirtz in what is set to be the most expensive deal in Premier League history. Bournemouth left-back Kerkez, meanwhile, should set Liverpool back around £45m, which would take their summer spending to almost than £200m on three players after completing a move for Jeremie Frimpong. Liverpool will need to make sure they remain within the Premier League's PSR financial rules and therefore Arne Slot will have to sanction a handful of exits. After winning the Premier League, it makes sense for the Dutchman to trim his squad slightly and freshen it up. There are a handful of players whose futures are uncertain at Anfield and could be on the chopping block. Mirror Football has taken a look at five players who could be on their way out of Liverpool once they have started splashing the cash this summer. Harvey Elliott The midfielder has become a clear candidate for the exit door at Liverpool after he recently spoke out to confirm he wants to play regularly and doesn't want to "waste years of his career" on the subs bench. Elliott played just 18 times in the Premier League last season as Liverpool romped to the title, with 16 of those coming as a substitute. But should Wirtz arrive at Anfield, that could further limit his opportunities and Liverpool will know that selling Elliott would stand them in good stead as far as PSR is concerned because he is a home grown player. Elliott said: "It's just a situation that me and the team have to have a conversation about because I'm coming into an age now where I'm 22, I'm going to be 23 next season," said Elliott when asked if he is considering leaving Liverpool. "I don't really want to be wasting years on my career because it's a short career. You don't know what's going to happen. I need to reflect. I need to see if I'm content in doing what I'm doing and how can I improve as a player because that's the most important thing. "I just want to improve and be the best possible version of myself. If that's to go somewhere else, then it's a decision that I'm going to have to make and I just need to see what happens. Nothing makes me want to leave. I love the club, I love the fans, the team. I support them as well. But most importantly, it's just about what's best for my career." Federico Chiesa The Italian has barely played for Liverpool since joining from Juventus for £10m last summer, with injuries significantly halting his progress. In fact, Chiesa started just four times in all competitions and featured only 14 times in total - scoring twice - as he struggled to make an impact for Slot. Chiesa looks way down the pecking order at Anfield and there are also still doubts over his fitness levels after experiencing a number of setbacks and the Daily Mail have claimed he is considering moving back to Italy. The player himself admitted he would sit down with his agent and family to discuss his future but said he "wouldn't mind" staying with Liverpool despite enduring "frustration" with his situation. He told Corrirere dello Sport: "The year is over. But it's an experience I would do again. Soon I will sit down at the table with the club, Fali (Ramadani, his agent) and my family to find the best solution. I wouldn't mind staying in Liverpool at all. "In the autumn Liverpool were going three times as fast as the others, an incredible intensity. At the beginning I felt the frustration… The desire to play was there, I put it aside, I understood the situation." Darwin Nunez Since joining Liverpool for £85m in 2022, Nunez has been something of a 'nearly man' - always chipping in with goals but never becoming the main man at Liverpool. There was so much hope for the Uruguayan after he arrived from Benfica off the back of netting 34 times from 41 appearances. The forward can pop up with an important goal and clearly has talent but he is yet to justify his huge price tag and continues to be only a squad player under Slot. This season he only started eight times in the Premier League but it was in the cup competitions where he made his mark as he chipped in with seven goals across the season - down from 18 in 2023-24. Nunez is now being linked with a move away after being linked with Arsenal and even Manchester United, while Saudi Pro League clubs are also believed to be weighing up a move. With Luis Diaz appearing to be the first choice striker at Liverpool, Foot Mercato have claimed Al-Hilal are among those monitoring the player. Kostas Tsimikas With Kerkez coming in, it wouldn't make logical sense for Liverpool to have three left-backs, so you'd bank on one of the other two leaving the club. While Andy Robertson has appeared to fall out of favour under Slot in the last season, he remains the more experienced option who has been with Liverpool for eight seasons. Tsimikas will be the more frustrated player if - after he began to finally challenge Robertson at left-back - Kerkez comes in and replaces him immediately, therefore he could be looking to leave in the near future. Various reports have claimed Liverpool don't see Tsimikas as their main left-back long term and that he could be used as one of the players to make way for more financial leeway. He has played 114 games for Liverpool in total and clocked 28 appearances in the 2024-25 campaign but when the Reds search for players to shift, Tsimikas should be high up on the list. Joe Gomez Gomez nearly left Liverpool for Newcastle last season before the Magpies pulled the plug on the deal and was hoping for new lease of life after Slot took over from Jurgen Klopp. But Gomez had a hugely frustrating campaign that was hampered by hamstring injuries - which forced him to miss a total of 28 games. He hasn't played since February and only managed a total of 17 appearances in all competitions. Now, Slot could be ready to cash in on the injury-prone defender if an offer comes in for him this summer. According to the Liverpool Echo, Gomez is facing a "transfer crossroads" moment and it would not be a surprise if he left the club after ten years on Merseyside.
Daily Mirror
3 hours ago
- Daily Mirror
Florian Wirtz's Liverpool medical planned 'in days' as agent confirms contract
Liverpool are set to complete a deal for Florian Wirtz to continue a busy summer in the transfer market as Arne Slot prepares for his second season in charge of the club Liverpool are set for a busy transfer window after claiming the Premier League title in Arne Slot's first season. The club have taken advantage of the first opening of the summer market to get deals over the line. The Reds have a final day to conduct more business, before a pause takes place with the window re-opening on June 16. When a deal for Florian Wirtz will get over the line will be top of the Reds' agenda, with negotiations underway with Bayer Leverkusen to seal a record deal. Wirtz's former team-mate Jeremie Frimpong has already arrived at Anfield, in addition to goalkeeper Armin Pecsi. Giorgi Mamardashvili is soon to join up with the Reds after a deal was agreed last summer for the Georgia star. Trent Alexander-Arnold has already exit the club for Real Madrid and it's unlikely he will be the only departure. The likes of Federico Chiesa, Harvey Elliott and Darwin Nunez all have uncertain futures. Mirror Football takes a look at the latest transfer news and rumours around Anfield. Florian Wirtz medical There is an expectation that Florian Wirtz will complete a Liverpool medical in the coming days as plans move ahead to agree a deal with Bayer Leverkusen. Sky Sports report that an agreement is close between the parties and that a transfer could be tied up quickly. A done deal should be finalised within a week with Wirtz convinced by the project as the Reds hammer out the details for a deal with the Bundesliga side. Both teams will have been pleased to see the playmaker come through the international break unscathed having played in both of Germany's Nations League games. Livrpool are set to present a fourth and final offer worth around £118million to Leverkusen. The German side have been holding out for £126.4m from the start of negotiations but a comprimise is expected to be reached. Elliott's future plans Harvey Elliott has conceded he will need to consider a Liverpool exit to get the best out of his career. The midfielder struggled to break into Arne Slot's starting XI in 2024/25 and wants more time on the pitch to continue his growth. "It's just a situation that me and the team have to have a conversation about because I'm coming into an age now where I'm 22, I'm going to be 23 next season," he said. "I don't really want to be wasting years of my career because it's a short career. You don't know what's going to happen. "I need to reflect. I need to see if I'm content in doing what I'm doing and how can I improve as a player because that's the most important thing. "I just want to improve and be the best possible version of myself. If that's to go somewhere else, then it's a decision that I'm going to have to make and I just need to see what happens. "Nothing makes me want to leave. I love the club, I love the fans, the team. I support them as well. But most importantly, it's just about what's best for my career." Agent confirms goalkeeper's contract New Liverpool signing Armin Pecsi will remain at Anfield this season and has signed a five-year contract, according to his agent. The 20-year-old was an unexpected addition to the Reds' squad but Liverpool produced the most concrete plan for Matyas Esterhazy's client. "Armin will be at Liverpool next season," he told M1. "This was one of the most important links in our decision. "We chose Liverpool because they outlined a professional plan that we can identify with, and Armin is a very intelligent, patient and ambitious player."
