German Consumer Sentiment Misses as August GfK Falls to -29.6

German consumer sentiment worsened more than expected in August, the GfK/NIM survey showed Thursday, as households grew more cautious about the economic outlook.

The forward-looking index fell to -29.6 from a revised -29.3 in July. Economists had forecast a reading of -28.5. The decline snapped a two-month streak of modest improvement and pushed sentiment back toward the lows seen earlier this year.

The data reinforce the view that the German recovery remains fragile, even as the broader eurozone shows tentative signs of stabilisation. Weak household spending, elevated inflation, and uncertainty around export demand have kept consumers reluctant to open their wallets.

For the euro, the release added to the downbeat tone. The single currency slipped against the dollar, with EUR/USD trading below 1.1200 in the European morning. Traders said the miss raised the bar for a hawkish tone from the European Central Bank when it meets next month.

Bund yields edged lower on the session, with the 10-year benchmark falling 2 basis points to 2.34%. The move reflected a modest repricing of rate expectations, though the ECB's path remains largely data-dependent.

The eurozone flash composite PMI, due Friday, will provide the next snapshot of economic activity. A print below 50 would amplify recession fears and further pressure the euro.