German consumer confidence is set to improve in February, survey results from the market research group GfK showed on Thursday.
After two consecutive declines, the consumer sentiment index rose to -6.7 in February from revised -6.9 in January. Economists had forecast the index to fall to -7.8.
Both the economic and income expectations as well as the propensity to buy improved in January compared to the previous month.
Despite rising incidences and inflation, consumers are somewhat more optimistic at the beginning of the year, Rolf Bürkl, GfK consumer expert said. They are hoping for a slight easing in price developments.
“In addition, the experts assume that the pandemic situation can be expected to ease in the spring, which will lead to the lifting of a number of restrictions,” Bürkl added.
Among components of the consumer confidence indicator, the index for economic expectations climbed 5.7 points to 22.8 in January. The market research group expects the economic growth to accelerate further in 2022 with private consumption playing an important role.
Following three consecutive months of decline, the income expectations index gained 10 points to 16.9. Consumers assumed that price developments will ease somewhat this year.
Employees hope that higher prices will lead to the corresponding tariff increases. Amid better employment situation and the shortage of skilled workers, their hopes are reasonable, GfK said.
The propensity to buy grew 4.4 points to 5.2 in January. Despite the current increase, the propensity to consume among Germans has so far remained subdued, said GfK.
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