BERLIN (Reuters) – German consumer sentiment is expected to improve at the start of next year but it is unclear whether this recovery will mark the start of a lasting trend after a sharp deterioration in 2023, a survey published on Wednesday showed.
The consumer sentiment index for Europe’s largest economy fell from -27.6 (revised) in December to -25.1 for the month of January while economists polled by Reuters expected -27.0.
According to the survey of around 2,000 consumers carried out by the GfK institute and the Nuremberg Institute for Market Decisions (NIM), the increase in expectations regarding increased income has notably contributed to increasing general sentiment, while intentions purchasing activity and positive expectations regarding the economy have also recovered.
“It remains to be seen whether the current rise marks the start of a lasting recovery in consumer confidence,” commented Rolf Bürkl, consumer specialist at NIM, noting that consumers are still very worried.
“Geopolitical crises and wars, sharp rises in food prices and discussions on the federal budget for 2024 continue to cause uncertainty,” he added.
(Writing by Miranda Murray; Claude Chendjou, edited by Zhifan Liu)
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