Tuesday, 02 January 2024 12:17 GMT

Consumer morale in Germany to see notable improvement in August


(MENAFN) Consumer morale in Germany is projected to experience a notable improvement in August, reaching levels not seen in over two years, according to data released on Wednesday. Market researcher GfK anticipates that consumer sentiment will rise to minus 18.4 points, an increase of 3.2 points from July. This positive shift is attributed to anticipated gains in economic and income expectations, as well as an increased propensity to buy.

The data indicates that while overall consumer sentiment is improving, the willingness to save has remained stable during this period. This suggests that despite heightened optimism, consumers are not significantly altering their saving behaviors.

Rolf Burkl, a consumer expert at GfK in Nuremberg, suggested that the euphoria surrounding the upcoming European Football Championship (Euro 2024) may be contributing to this surge in consumer confidence. However, Burkl cautioned that it remains uncertain whether this boost in morale will be sustained or if it is merely a temporary spike. "As quickly as this good mood has occurred, it can also disappear again," he noted.

In terms of specific indicators, income expectations have surged by 11.5 points, reaching 19.7 points, the highest level since October 2021. Economic conditions have also seen an improvement, climbing by 7.3 points to 9.8 points. These gains reflect growing optimism among consumers about their financial prospects and the broader economic environment.

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