BERLIN, July 24 Reuters German consumer sentiment is set to recover significantly heading into August as households39; income expectations hit their highest point in over two years due to slightly lower inflation and noticeable wage increases, a survey showed on Wednesday.

The consumer sentiment index, published jointly by GfK and the Nuremberg Institute for Market Decisions NIM, rose more than expected, to 18.4 points heading into August, from a slightly revised 21.6 in July and above a forecast 21.0.

The rise is due primarily to consumers39; income expectations for the next 12 months reaching their highest point since October 2021, while economic expectations and the willingness to buy also recorded moderate increases.

While income expectations aided the rise, it is highly likely that the euphoria triggered by the European Championship in many parts of the population also played a role, said Rolf Buerkl, consumer analyst at the NIM institute.

However, he cautioned that it remains to be seen whether this effect is sustainable or just a shortlived flareup.

As quickly as this elation has arisen, it can also disappear again. If the latter is the case, the road out of the consumption slump will be long and arduous, added Buerkl.

AUG 2024

JUL 2024

AUG 2023

Consumer climate

18.4

21.6

24.6

Consumer climate components

JUL 2024

JUN…