Consumer mood improves in Germany, GfK shows

Date: Thursday 26 Jan 2012

The German GFK consumer climate index rose to 5.9 points in February compared to the previous month’s revised figure of 5.7. The market consensus was expecting a reading of 5.6. This is the best reading since April 2011.

Looking at the components to this index, we see that economic expectations rose to 7.5 from -0.9. The income expectations index rose to 34.1 from 34.0. Finally, willingness to buy rose to 41.8 from 27.8.

“Economic expectations increased significantly for the second consecutive time and, in light of this, consumers are also more likely to make purchases," GfK's press release read.

"In January, the willingness to buy indicator more than recovered from its decline of the prior month. Against the backdrop of a pleasing labour market in Germany, income expectations were virtually unchanged in comparison with December and therefore remained at a very good level.”

According to analyst at Digital Look, "looking at the components of this index, we are seeing strength in the German consumer. We are seeing a pattern of improvement in this indicator as well as other German surveys, such as the ZEW and IFO."

The data should be slightly positive for the euro and the Dax while negative for the Bund, they said.

F.M.

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