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GfK Consumer Sentiment Crashes to -33.3, Capping ZEW-Ifo Confidence Collapse

Germany's GfK consumer sentiment plunged to -33.3 in May (vs -29.3 expected; prior -28.1), the lowest since February 2023, sealing a brutal week of misses amid Iran war fears, inflation, and energy shocks. It followed ZEW economic sentiment tanking to -17.2 on April 21 (vs -5.0 exp; weakest since Dec 2022) and Ifo business climate falling to 84.4 on April 24 (lowest since May 2020), with sharp drops in current conditions (-73.7), expectations (83.3), and income outlook (-24.4). This triple slump signals broad economic deterioration, driving downside pressure on Germany 40 equities, the euro, and boosting ECB rate cut odds.

Category

Germany 40

Sentiment

Bearish

Event

Market data

Reading time

1 min