Consumer confidence recovers in Germany as energy prices fall

The consumer confidence index in Germany continued to recover in March due to falling energy prices and recession concerns, reaching its highest level since July 2022.

GfK, a Germany-based market research company, announced the results of the Consumer Confidence Index for next month.

In the statement, it was indicated that the Consumer Confidence Index, which was revised in January and measured as minus 33.8 for this month, increased by 3.3 points to minus 30.5 points for March. Thus, while the index took its rise to the fifth month, it reached the highest level since July 2022.

The market expectation was for the index to rise to minus 30.4 points.

In his assessment on the subject, GfK researcher Rolf Buerkl stated that despite ongoing crises such as the war between Russia and Ukraine, the weakening of the world economy and high inflation, consumer confidence has visibly improved. one more time.

THE DECREASE IN ENERGY PRICES HAS POSITIVELY AFFECTED

Noting that recent declines in energy prices and economists’ assessments that a recession in the German economy can now be avoided this year have gradually restored optimism among consumers, Buerkl said: “Consumer pessimism, which peaked last fall, is declining.” He used the phrase.

Recalling that although consumer confidence has improved, it is still at a low point, Buerkl warned that private consumption may not make a positive contribution to growth in the German economy this year.

Meanwhile, negative consumer confidence indicates a year-on-year drop in private consumption. (AA)