BERLIN, June 26 (Reuters) - German consumer sentiment is
set to fall slightly in July, ending a four-month streak of
rises, as households left uncertain by higher prices and an
economy dawdling toward recovery opt to hold onto their money, a
survey showed on Wednesday.  
    The consumer sentiment index published jointly by GfK and
the Nuremberg Institute for Market Decisions (NIM) unexpectedly
fell to -21.8 heading into July, from a slightly revised -21.0
in June. 
    Analysts polled by Reuters had expected a rise, to -18.9. 
    The index joins other indicators pointing to a bumpy road
ahead for Europe's largest economy, after Ifo's business climate
index and HCOB composite PMI also unexpectedly fell this month. 
    "The interruption of the recent upward trend in consumer
sentiment shows that the road out of the sluggish consumption
will be difficult and there can always be setbacks," said NIM
consumer analyst Rolf Buerkl. 
    Income and economic expectations both fell moderately, while
the willingness to buy stagnated at a low level and the
willingness to save, already at a high level, grew slightly. 
    "The slightly higher inflation rate in Germany in May is
clearly causing more uncertainty among consumers again, which is
also reflected in the increase in the willingness to save," said
Buerkl. Inflation rose to 2.8% in May on higher services prices.
    Sustained recovery will only come when consumers have
planning security, which will return if upward pressure on
prices is dampened, and clear future prospects, he said.
    "This also means that the government must quickly and
clearly communicate the burdens and reliefs people will face as
a result of the upcoming budget discussions," Buerkl added.

                                JUL 2024  JUN 2024  JUL 2023
 Consumer climate               -21.8     -21.0     -25.2
 Consumer climate components    JUN 2024  MAY 2024  JUN 2023
 - willingness to buy           -13.0     -12.3     -14.6
 - income expectations          8.2       12.5      -10.6
 - business cycle expectations  2.5       9.8       3.7
    
NOTE - The survey period was from May 30-June 10, 2024.
    
    The consumer climate indicator forecasts the progress of
real private consumption in the following month.
    An indicator reading above zero signals year-on-year growth
in private consumption. A value below zero indicates a drop
compared with the same period a year earlier.
    According to GfK, a one-point change in the indicator
corresponds to a year-on-year change of 0.1% in private
consumption.
    The "willingness to buy" indicator represents the balance
between positive and negative responses to the question: "Do you
think now is a good time to buy major items?"
    The income expectations sub-index reflects expectations
about the development of household finances in the coming 12
months.
    The additional business cycle expectations index reflects
respondents' assessment of the general economic situation over
the next 12 months.

 (Reporting by Miranda Murray
Editing by Madeline Chambers)