German consumer sentiment data came in weaker than expectations and lower than the previous reading:
Sentiment by GfK: -25.5 vs. -24.5 expectations and -24.4 previously
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Open account Try demo Download mobile app Download mobile appFutures contracts on the DAX (DE30) lost slightly after the GfK reading, which indicates that consumers in Germany are getting weaker - which sounds quite recessionary - especially in the context of the continuation of the ECB's tightening cycle.
- Gradually, pressure may be mounting to keep rates unchanged at the ECB's September meeting, with Bloomberg sources recently indicating that with the eurozone's largest economy, Germany, weakening, such a move could become feasible.
- According to GfK, the chances of a sustained recovery before the end of the year are declining more and more, and private consumption in Germany is unlikely to have a positive impact on the economy in 2023.
Source: xStation5
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