German GfK Consumer Sentiment To Rise Marginally

(RTTNews) - German consumer sentiment is set to rise only marginally heading into April despite a revival in expectations regarding the economy after the new elections, a closely watched survey revealed Friday.

The forward-looking consumer climate index rose to -24.5 in April from -24.6 in March, a survey jointly published by the market research group GfK and the Nuremberg Institute for Market Decisions showed.

"Apparently, the elections and the prospect of a new government have lessened pessimism among a number of consumers," NIM consumer expert Rolf Burkl said.

"However, the renewed rise in the willingness to save is clouding the overall picture. It prevents a stronger improvement in the Consumer Climate," Burkl added.

On hopes of economic recovery, economic expectations improved noticeably in March. The index gained 5.7 points to 6.9 in March.

GfK said the real recovery will depend on whether the recently agreed financial package is implemented quickly and in a targeted manner.

Income expectations strengthened in March after two consecutive declines. The index moved up 2.3 points to -3.1. However, the index is still 1.6 points below the value in the same period last year. In addition to high prices and insufficient incomes, the persistently uncertain political and economic situation are reasons for the weak development of income expectations, Burkl said.

The willingness to buy remained at a very low level despite an improvement. The corresponding index stood at -8.2 compared to -11.1 in February.

The savings indicator advanced 4.4 points to 13.8 in March to hit the highest value since April 2024.