German consumer sentiment falls to new low due to Russia-Ukraine conflict: survey

BERLIN - Consumer sentiment in Germany fell to a new all-time low in May after already plummeting massively because of the start of the Russia-Ukraine conflict, the German Retail Federation (HDE) said on Monday.

Although the deterioration in consumer sentiment in Germany was much less pronounced than in the previous month, the outlook for private consumption in the coming three months "remains gloomy", the HDE noted.

The development of consumer sentiment was currently dominated by the Russia-Ukraine conflict, while the COVID-19 pandemic "moved into the background" in view of eased COVID-19 measures, according to the HDE.

As the further course of the conflict was "uncertain and its economic impact cannot be fully assessed, the gloomy mood among consumers is likely to persist and dampen private consumption in the coming weeks", the HDE noted.

The HDE consumer barometer based on a monthly survey among 1,600 German consumers dropped for the sixth month in a row. The index measures sentiment over the next three months.