Source: Growth from Knowledge
German consumer confidence climbed for the second straight month in February, but income outlook and buying propensity posted declines from January. EWG is up 1.05% premarket.
- The consumer sentiment indicator jumped to 24.1, up 1.3 points from the previous months and nearly 16 points from the same month in 2021.
- The growth comes as consumers predict economic growth to accelerate in 2022, with higher private consumer spending expected to offset supply chain concerns.
- The income expectations indicator declined to its lowest level in over a year at 3.9, down by 13 points from the previous year and compares with -2.9 in January 2021.
- The decline was driven by the inflationary uptrend, reducing purchasing power as energy and food prices continue to climb.
- The propensity to buy also declined to 1.4, down by 3.8 points from the previous month and 6 points from the same month in 2021.
- GfK Consumer Expert Rolf Bürkl believes consumer spending is expected to rebound should inflation moderate.
- The March consumer sentiment is expected to decline by 1.4 points from February.