Financial News: German GfK Consumer Sentiment To Rise In January

German GfK Consumer Sentiment To Rise In January

12/19/2024 - 04:00:00 (RTTNews)

(RTTNews) - German consumer confidence recovered marginally towards the end of the year and it is forecast to rise again in January, survey data jointly published by the market research group GfK and the Nuremberg Institute for Market Decisions showed on Thursday.

The forward-looking consumer sentiment index posted -21.3 in January, up from -23.1 in December. The score was expected to rise to -22.6.

However, a sustained recovery in consumer sentiment is not yet in sight, as consumer uncertainty is still too high, NIM consumer expert Rolf Bürkl said. "The main reason is high food and energy prices. In addition, concerns about job security are growing in many sectors."

Discussions about job cuts, plant closures and the relocation of production abroad are raising concerns in the labor market.

Income and economic expectations and the willingness to buy rose in December, while the willingness to save weakened sharply.

The economic expectations index stabilized after four consecutive declines. The index climbed to +0.3 from -3.6 in November.

Although the downward trend in confidence stopped for the time being, consumers do not yet see any signs of a sustained economic recovery, GfK said. Research institutes forecast a minimal growth at the best for the coming year.

Income expectations also recovered somewhat following a sharp fall in November. The index rose to +1.4 from -3.5.

Despite the improvement, the score remained notably below the level seen in summer. Downward revisions in growth forecasts and rising unemployment prevent a significant recovery in income expectations.

Willingness to buy continued to increase in December. The indicator registered -5.4, up from -6.0 in the prior period.

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