Consumer confidence in Germany rises after three months of decline

Germany’s consumer confidence index improved before Christmas despite the slowdown in the global economy and military conflicts around the world.

GfK, a Germany-based market research company, announced the results of the consumer confidence index for next month.

The statement states that the consumer confidence index, which was revised in October and measured at -28.3 for this month, increased by 0.5 points to -27.8 points in December. Thus, the index rose before Christmas after three consecutive months of falls.

The market expectation was that the index would rise to -27.9 points.

‘NO SIGNS OF SUSTAINABLE RECOVERY’

According to the GfK report: “Consumer confidence in Germany remained broadly stable in November and there were no significant changes. While the desire to buy increased slightly, there was a slight decrease in income expectations.” The statement was included.

The expert from the Nuremberg Institute for Market Decisions, Rolf Buerkl, in his assessment on the matter stated that consumer confidence stabilized towards the end of the year after three consecutive months of decline and stated: “Consumer confidence remains “At a very low level and there are no signs of a sustainable recovery in the coming months. Consumer sentiment is still characterized by uncertainty and anxiety,” he commented.

Buerkl stated that income expectations decreased in November by 1.4 points, to -16.7 points, and emphasized that rising food prices in particular continue to put pressure on the purchasing power of people’s incomes.

According to GFK, unusually high inflation is also an important reason for the rather pessimistic assessment of income expectations in Germany.

Meanwhile, consumer confidence is negative, indicating a year-on-year decline in private consumption.