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German Consumer Confidence Poised to Stabilize in February

January 27, 2022 by Forex Winner Leave a Comment

German Consumer Confidence Poised to Stabilize in February

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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