German consumer sentiment improved further in April, with income expectations and willingness to buy both rising, while savings declined, according to the latest GfK Consumer Climate survey powered by NIM. The consumer climate index is forecast to rise to -20.6 in May, up from a revised -24.3 in April, marking the strongest monthly improvement since October 2024. The survey highlighted a 7.4-point jump in income expectations to 4.3, boosted by a recent public sector wage deal, while willingness to buy increased 3.3 points to -4.9. Meanwhile, the savings indicator dropped sharply by 5.4 points to 8.4, suggesting waning uncertainty following the expected formation of a new German government. Economic expectations edged up 0.3 points to 7.2, despite concerns over US trade policy and ongoing downward revisions to Germany's growth forecasts, which now point to a third consecutive year of recession. Analysts warned that further escalation in trade tensions could derail the fragile recovery in consumer confidence. Attribution: Amwal Al Ghad English Subediting: M. S. Salama
