According to the May survey,
Income Expectations increased by 1.8 points to 12.5 points.
Willingness to Save declined by 10 points to 5 points, the lowest level since August 2023 (0.5 points). In May, the Willingness to Save stood at 14.9 points.
The Willingness to Buy advanced by 0.3 points to -12.3 points. Despite the increase, the Willingness to Buy remained subdued, raising uncertainty about the outlook for household spending.
Consumer sentiment toward the economic outlook improved. Economic Expectations advanced by 9.1 points to 9.8 points.
Consumer Confidence and Post-June ECB Rate Cut Plans
Despite the upward trend in the GfK Consumer Climate Index, the Willingness to Buy painted an uncertain outlook for consumer spending despite the marked decline in the Willingness to Save.
Lackluster consumer spending could dampen demand-driven inflationary pressures and allow the ECB to cut interest rates.
EUR/USD Reaction to German GfK Consumer Climate Survey
Before the German GfK Consumer Climate report, the EUR/USD rose to a high of 1.08612 before falling to a low of $1.08459.
However, in response to the GfK Consumer Confidence numbers, the EUR/USD climbed from $1.08447 to $1.08473.
On Wednesday, the EUR/USD was down 0.10% to $1.08458.
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