The results of the Gfk Group survey, which was conducted among 2,000 people in the period from January 5 to January 16, showed that consumer confidence in Germany improved slightly, helped by rising economic and income expectations.
The data showed that the February consumer sentiment index rose to -33.9 points from -37.6 points in January (revised from -37.8 points). Thus, consumer sentiment improves for a fourth time in a row. Economists had expected an increase to -33.0 points.
Two of the three sub-indices rose in January. The component of consumer expectations regarding income increased by 11.2 points to -32.2 points. This was the fourth increase in a row. The propensity to buy component fell by 2.4 points to -18.7. The component of economic expectations of consumers increased by 9.7 points to -0.6 points. This means that economic sentiment has almost returned to its long-term average, which is around 0 points.
"Consumer sentiment continued to improve. And, despite the fact that the level is still very low, pessimism has subsided recently. Falling energy prices, such as gasoline and fuel oil, have made consumer sentiment less gloomy. Nevertheless, 2023 will remain difficult for the economy. Personal consumption will not be able to positively affect overall economic growth this year," GfK said.