Germany: Consumer confidence improves for second consecutive month
February 27, 2013
Consumer confidence continues its upward trajectory, with the forward-looking GfK consumer confidence indicator rising to 5.9 points in March from the 5.8 points observed in February. The reading marked a second consecutive increase and was in line with market expectations.
While the overall consumer confidence index refers to March, GfK also published three-sub indicators, which refer to February. According to GfK, both sub-indices of economic expectations and willingness to buy big ticket items improved compared to the previous. The improvement reflects consumers' view that economic activity will not cool down in the months to come. In contrast, the sub-indicator of income prospects dropped over the previous month. Nonetheless, GfK reported that despite the slight loss in March, consumers remain "extremely optimistic about their further financial development".
FocusEconomics Consensus Forecast panellists anticipate private consumption to expand 0.9% in 2013, which is unchanged from last month's estimate. For 2014, panellists see private consumption growing 1.1%.
Author: Ricardo Aceves, Senior Economist