2023.01.2406:54:00UTC+00German Consumer Sentiment Set To Improve Further - GfK

Germany's consumer confidence is set to improve for the fourth month in a row in February amid the sustained recovery in both economic and income expectations as energy prices rose less sharply and the government took cost-cutting measures, survey data from the Nurmeberg-based market research group GfK showed Tuesday. The forward-looking consumer confidence index climbed to -33.9 from -37.6 in January, which was revised from -37.8. However, economists had expected a higher reading of -33. The survey period was from January 5 to 16.

"Falling prices for energy, such as petrol and heating oil, have ensured that consumer sentiment is less gloomy," Rolf Burkl, GfK consumer expert, said. "Nevertheless, 2023 will remain difficult for the domestic economy."

Private consumption will not be able to make any positive contribution to overall economic development this year and this is also indicated by the still very low level of the indicator, Burkl added.

The propensity to buy continued with its ups and downs in January as households were expecting significantly higher amounts for their heating bills in the coming months, GfK said.