German consumer confidence is set to improve in June underpinned by robust economic expectations, survey results from the market research group GfK showed on Thursday.
The forward-looking consumer confidence index rose to -7.0 in June from revised -8.6 in May. Nonetheless, the reading was weaker than the economists’ forecast of -5.2.
Rolf Bürkl, GfK consumer expert, said “We are leaving the third wave behind us more and more, the incidences have been falling significantly for several weeks.”
“We are also making great strides in vaccination. As a result, openings and a departure from strict lockdown are possible,” Bürkl added.
The sudden rise in the economic outlook feeds hopes that – with a delay – consumer sentiment will also benefit more in the second half of the year and private consumption can recover, the market research group said.
Currently, the German economy is being supported primarily by the positive export development, especially in the trade in goods and services with China and the USA.
Among three components of the consumer confidence index, economic expectations surged in May and income expectations rose moderately. Meanwhile, the propensity to buy declined from April.
After a plus of almost 34 points, the economic expectations indicator jumped to 41.1 points in May, the highest value in more than three years.
The income expectations indicator rose 10.2 points to 19.5 points in May. Compared to last year, the score was up by 25 points.
After three increases in a row, the propensity to buy indicator dropped 7.3 points to 10.0. Despite the openings and relaxations that have been made or announced so far, a number of consumption options, especially in the service sector, are not possible or only possible to a very limited extent, the survey showed.
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