German consumer sentiment is set to stabilize in May following two successive declines, despite economic headwinds, market research group GfK said.

GfK's forward-looking consumer sentiment index is set to come in at 10.4 points in May, unchanged from April, it said. The outcome is slightly above economists' forecast of 10.3 points.

The downward trend in consumers' economic expectations that has persisted for more than a year continued in April, following a brief intermission in the previous month, GfK said. The economic expectations sub-index fell to 6.1 points in April from 11.2 in March, GfK said. Income expectations rose to 58.4 points in April from 55.9 points in March, while the propensity to buy rose to 54.8 points from 50.2 points.