Energy prices soar, Germany's consumer confidence index plunges in April

Golden Ten Data reported on March 26 that, due to the Iran war causing energy prices to rise, German households are worried about intensifying inflation, which could hinder Germany's fragile economic recovery. German consumer confidence is expected to deteriorate further in April. Germany's Gfk Consumer Confidence Index for April fell by 3.2 points to -28.0, while economists had forecast -27. Due to concerns that inflation will erode purchasing power, consumers' income expectations slipped into negative territory, and economic expectations also declined, dropping to their lowest level since December 2022. Rolf Bürkl, Director of Consumer Sentiment at NIM, stated: “A recent study by NIM shows that 60% of Germans expect oil, natural gas, and gasoline prices to remain high in the long term. This will naturally have a negative impact on consumer sentiment.” Bürkl added that the effects of the Middle East crisis have not yet appeared, and consumers' willingness to buy and save has not yet been affected.