Source: GfK
German consumer confidence is likely to stabilize in February, indicating an improvement even amid the concerns over inflation. EWG is up 0.09%.
- The consumer sentiment is expected to decrease by -6.7 in February, up from -6.9 in January. This compares with -1.8 in December and -7.5 in January 2021.
- GfK Consumer Expert Rolf Bürkl said consumers are optimistic as they expect a slight decline in price trends, given the base effects resulting from the prices in 2021.
- Experts also believe concerns involving the COVID-19 pandemic are likely to ease in the spring, with a number of restrictions being lifted.
- Income expectations also gained steam after declining for three months, up by 10 points to bring the indicator up to 16.9. This is slightly higher than the year-ago level.
- Consumers expect price trends to ease later in the year, while a number of workers predict wage increases to address the higher prices.
- The propensity to buy indicator gained 4.4 points to a total of 5.2, leaving the level at a conservative trend.
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