DE4CC0DE-5FC3-4494-BCBF-4D50B00366B5

German Consumer Sentiment Consolidates Upward Trajectory, Says GfK

By Reuters
Share this article
German Consumer Sentiment Consolidates Upward Trajectory, Says GfK

German consumer sentiment is set to improve for a fourth consecutive month in February as energy prices fall, a GfK institute survey has shown.

The institute said its consumer sentiment index rose to -33.9 heading into February from a revised reading of -37.6 in January, but was slightly below forecasts from analysts polled by Reuters of -33.0.

"Falling energy prices, such as for gasoline and heating oil, have ensured that the consumer sentiment is less gloomy," said GfK consumer expert Rolf Buerkl. Nevertheless, he warned that 2023 will remain difficult for the German economy.

Buerkl said private consumption will not be able to positively contribute to overall economic growth this year, adding that this is signalled by the still very low level of the indicator.

Income Expectations

Among the three sub-indices, income expectations posted a noticeable increase in January and economic expectations climbed to pre-war levels. However, willingness to buy continued its rollercoaster of the last few months and is currently weakening.

ADVERTISEMENT

The consumer climate indicator forecasts the development 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.

'Willingness To Buy'

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?"

ADVERTISEMENT

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 the assessment of those questioned of the general economic situation in the next 12 months.

News by Reuters, edited by by ESM – your source for the latest retail news. Click subscribe to sign up to ESM: European Supermarket Magazine.

Get the week's top grocery retail news

The most important stories from European grocery retail direct to your inbox every Thursday

Processing your request...

Thanks! please check your email to confirm your subscription.

By signing up you are agreeing to our terms & conditions and privacy policy. You can unsubscribe at any time.