German consumer confidence hits three-year low. The NIM Consumer Climate index plummeted to minus 33.3 in May from minus 28.1 in April, marking the weakest reading since February 2023. Rising inflation and collapsed income expectations are driving the sharp deterioration in sentiment. The geopolitical tensions from the Iran conflict are compounding economic pressures on German households. This declining confidence signals potential headwinds for consumer spending and economic growth in Europe's largest economy. Weakening domestic demand could impact retail sales and overall GDP expansion in the coming months. Markets will closely monitor whether this sentiment decline translates into reduced consumer activity and business investment across the eurozone.
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