Germany Gfk consumer sentiment unexpectedly falls in April, rise in inflation weighs

A survey published by the Nuremberg-based GfK institute on Thursday showed that Germany consumer sentiment unexpectedly fell to its lowest level in five months going into April. April’s consumer sentiment came in at 9.8, down slightly from the reading of 10 in the previous month.

Economists polled by Reuters had on average expected the headline figure to remain unchanged at 10.0. Economic expectations and the propensity to buy recovering after a decline in the previous month, but income expectations fell a touch.

According to the latest survey from research house GfK, a rise in inflation which is hindering buying power weighed on sentiment. Despite the fall, historic data shows consumer sentiment is still high.

GfK said it forecasts a “light at the end of the tunnel for the current minor blip in the consumer climate, if the inflation rate is to fall again due to the current decline in crude oil prices.” GfK added that it expected inflation to fall below 2 percent in the coming months.