By Ed Frankl
Consumer confidence in Germany rose slightly as expectations for the economy and incomes improved, although concerns remained high about the outlook.
The forward-looking consumer climate index for Germany, published on Tuesday by research group GfK and the Nuremberg Institute for Market Decisions, forecasts a slight increase in confidence to minus 27.4 in April from minus 28.8 this month.
According to a Wall Street Journal survey, the value was slightly above economists' expectations of minus 28.
However, the recovery in consumer confidence in Europe's largest economy is still sluggish, said Rolf Bürkl, consumer expert at NIM.
“In times of multiple crises, consumers' high levels of uncertainty coupled with low confidence in Germany's economic development slow down their willingness to buy. Domestic demand cannot therefore yet stimulate the economy,” he said.
Consumer expectations for the economy and personal income have increased slightly, but the barometer of willingness to buy remains low, according to the data.
Meanwhile, the Savings Index, whose higher scores typically indicate a more fragile environment for consumers, remained elevated, the report said.
The high level of uncertainty that is preventing consumers from making larger purchases is hindering a sustainable recovery of the German economy, it said.
Write to Ed Frankl at [email protected]
(END) Dow Jones Newswires
March 26, 2024 03:14 ET (07:14 GMT)
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