By Xavier Fontdegloria 

German consumer sentiment is expected to rise in July as the Covid-19 pandemic retreats and the economy reopens, according to data from the market-research group GfK released Friday.

GfK's forward-looking consumer sentiment index is set to increase to minus 0.3 points in July from minus 6.9 points in June, the highest level since August 2020. Economists polled by The Wall Street Journal had expected consumer sentiment to rise to minus four points.

The advance in the vaccination campaign supports a further reopening and enables vacation travel, which in turn boosts optimism among consumers, said Rolf Buerkl, consumer expert at GfK.

GfK uses data from three subindexes from the current month to derive a sentiment figure for the coming month, measuring economic expectations, income expectations and propensity to buy. All of them increased in June compared with May.

The indicator of economic expectations climbed to 58.4 points in June from 41.1 points in May, the highest value in more than ten years.

Income expectations rose to 34.1 points in June from 19.5 the prior month, reaching a pandemic high. Some of the furloughed workers during the pandemic are likely to come back to their jobs, leading to brighter income prospects, GfK said.

Propensity to buy edged up to 13.4 points from ten points, signaling that consumers are still cautious despite the reopening from the lockdown, the report said.


Write to Xavier Fontdegloria at


(END) Dow Jones Newswires

June 25, 2021 02:14 ET (06:14 GMT)

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