BERLIN, June 28 Reuters German consumer sentiment is set to fall in July due to a decline in economic and income expectations, a GfK institute survey showed on Wednesday.

The institute39;s consumer sentiment index dropped to 25.4 heading into July from a slightly revised 24.4 in June, below the expectations of analysts polled by Reuters of a reading of 23.0.

The current development in consumer sentiment indicates that consumers are once again more uncertain, said GfK consumer expert Rolf Buerkl. This is the first setback for the indicator after eight consecutive increases, he added.

Continued high inflation rates are noticeably eroding the purchasing power of households and preventing private consumption from making a positive contribution, Buerkl said.

While the propensity to buy rose slightly, economic and income expectations declined.

JUL 2023

JUN 2023

JUL 2022

Consumer climate

25.4

24.4

27.7

Consumer climate components

JUN 2023

MAY 2023

JUN 2022

willingness to buy

14.6

16.1

13.7

income expectations

10.6

8.2

33.5

business cycle expectations

3.7

12.3

11.7

NOTE The survey period was from June 1 to June 12, 2023.

The consumer climate indicator forecasts…