Germany’s consumer confidence is set to improve in February amid further improvement in economic and income expectations, and private consumption in forecast to grow 1 percent in 2020, results of a survey by the market research group GfK showed Wednesday.
The forward-looking GfK consumer confidence index for February rose to 9.9 points from 9.7 in January, which was revised from 9.6. Economists had expected the score to remain unchanged at 9.6.
The latest the GfK consumer climate study was conducted between January 8 and 20 among around 2,000 consumers. “A first settlement in the trade dispute between the United States and China also makes things easier in Germany. Because as an export nation, you are dependent on a free and unhindered exchange of goods in this country,” GfK consumer expert Rolf B?rkl said.
“The positive start of the consumer climate in 2020 confirms our assessment that private consumption will continue to be an important pillar of the German economy this year.”
The income expectations index of the survey rose by 9.6 points to 44.6 in January, after a fall in the previous month, thanks to a more stable economic outlook amid a good employment situation.
The propensity to buy indicator climbed by 3.3 points to 55.5, its highest level in a year. The European Central Bank’s ultra low interest rates have further boosted the purchasing power, which continues to remain at a low level.
“As a result, saving as an alternative to consumption is still not an attractive option,” the GfK said.
“An increasing number of banks are also demanding punitive interest rates from private investors, which should give additional impetus to the mood for consumption.”