German consumer sentiment expected to further weaken in March – Gfk

The survey from the GfK market research institute, released on Wednesday, showed consumer sentiment in Germany is set to worsen in March, mainly due to further slowdown in households’ spending amid darkened geopolitical situation and concerns about government social policies.

German consumer sentiment index fell to -24.7 points for March from a revised -24.2 points in February and missed -23.1 forecast.

Key components of the index showed that much stronger than expected decline in consumers’ willingness to buy (Feb -9.3 vs Jan -4.0) provided the most significant negative impact on March numbers, along with strong rise in willingness to save (Feb 18.9 vs Jan 17.9).

Europe’s largest economy is struggling to gain traction as geopolitical uncertainty, high operating costs and weak domestic demand weigh on companies, despite some tiny signs that economic recovery slightly picks up.