Berlin (Reuters) – The morale of German consumers should further improve as the month of June, but the prudence of households as to their expenses remains a more solid takeover of the first economy in Europe, shows a survey published on Tuesday.

The consumer confidence index published by the GFK Institute and the Nuremberg Institute for Market Decisions (NIM) went from -20.8 points to -19.9 points, against an average forecast of -19.8 points established by the analysts interviewed by Reuters.

This improvement is due to the recovery of income prospects in May, which influences the assessment of consumer morale for the coming month. The drop in the propensity to buy and the increase in that to be saved had a moderating effect.

This is the third monthly increase in the global indicator, but the rate of improvement slowed down as June.

“The level of consumer confidence remains extremely low and consumer uncertainty remains high,” said Rolf Buerkl, responsible for consumer feeling at NIM. He cites in particular the turbulence linked to customs duties and the scholarship, as well as the prospect of a third year without growth in Germany, which would be historic.

“Given the general economic situation, people seem to think that it is wise to save,” he said.

The new German government is committed to considerably increasing investments and stimulating the economy after two years of contraction.

But trade tensions, linked to the policy desired by the American president, Donald Trump, threaten the German economy, very dependent on exports. This uncertainty led the government to give up its forecast for economic growth for 2026.

(Written by Rachel More; Claude Chendjou, edited by Augustin Turpin)

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