German consumer sentiment set to improve in April - GfK

German consumer sentiment is expected to improve in April, according to a survey released on Wednesday by market research group GfK.

GfK’s forward-looking consumer sentiment index for April rose to -29.5 from a revised -30.6 in March, coming in a touch below consensus expectations of -29.2.

The headline expectations index fell to 3.7 from 6.0, while the income expectations index improved to -24.3 from -27.3. The propensity to buy index ticked up just a touch to -17.0 from -17.3.

Rolf Bürkl, GfK consumer expert, said: "Income expectations are currently benefiting from the recent noticeable drop in energy prices, especially for gas and heating oil. Nevertheless, inflation will remain high this year, even if it will be somewhat lower than the 6.9% measured in 2022 according to the forecasts available so far.

"The expected loss of purchasing power is preventing a sustained recovery in domestic demand. Accordingly, private consumption is unlikely to make a positive contribution to economic growth in Germany this year. This is also signalled by the still very low level of consumer sentiment."