German consumer morale picks up on income expectations


BERLIN (Reuters) – German consumer sentiment rebounded in May as weaker energy prices and expected wage increases helped dispel households’ initial fears of lower purchasing power A survey by the GfK Institute revealed that it is expected to do so. The Institute’s consumer sentiment index improved from his slightly upwardly revised -29.3 in April to -25.7 heading into his May, beating analysts’ expectations of -27.9 polled by Reuters. , increased seven times in a row. GfK consumer expert Rolf Buerkl said sentiment was back on track after last month’s slowdown, but “values ​​are still below pre-pandemic levels from about three years ago.” On a more positive note, income expectations also rose for the seventh consecutive month, returning to pre-Ukrainian war levels for the first time,” Buerkl added. The income expectations sub-index rose to -10.7 from -24.3 the previous month, hitting a record high since February 2022, with more wages and better pay as workers cope with rising costs of living through strikes. Because they want working conditions. May 2023 April 2023 May 2022 Consumer Environment -25.7 -29.3 -26.6 Note – The study period was from 30 March 2023 to 11 April 2023. The Consumer Climate Index predicts the development of real consumer spending in the coming months. Indicators above zero indicate that private consumption is growing year-on-year. A value less than zero indicates a decrease compared to the same period last year. According to GfK, a one-point change in the indicator equates to a year-on-year change of 0.1% in consumer spending. The ‘willingness to buy’ metric represents the balance between positive and negative responses to the question ‘Do you think now is a good time to buy a key item?’ The Income Expectations sub-index reflects expectations for household development over the next 12 months. An additional Business Cycle Forecast Index reflects the questioner’s assessment of general economic conditions over the next 12 months. (Reporting by Miranda Murray; Editing by Rachel More and Friederike Heine)

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