Germany’s Consumer Confidence Jumps, But Income Outlook Declines

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.