Concerns about the consequences of the Iran war have weighed on consumer sentiment in Germany. According to a study published in Nuremberg on Thursday by the consumer research institutes GfK and NIM, the consumer climate indicator fell to minus 28.0 points in April, from a previously revised minus 24.8 points. Analysts had expected a weaker consumer mood, but had only assumed an average value of minus 27.3 points.
The Iran war has not yet had a noticeable impact on the propensity to buy or save. However, income expectations have fallen noticeably as a result of fears of inflation. “Consumers expect inflation to pick up again due to increased energy prices and that the economic recovery will be slowed again,” said NIM consumer expert Rolf Bürkl.
The Iran war also left its mark on consumers’ economic prospects, the study continues. Many consumers are worried that the cautious upswing in the German economy could be seriously set back. This is especially true if the conflict lasts longer.
