Germany: Consumer confidence stabilizes in April
March 27, 2013
Consumer sentiment halted its upward trend started in February. In April, the GfK forward-looking consumer confidence indicator was stable at the 5.9 points observed in March, in line with market expectations.
While the overall consumer confidence index refers to April, GfK also published three-sub indicators, which refer to March. According to GfK, consumers' economic expectations increased for a third consecutive month, reflecting households' view that a moderate economic recovery has started at the beginning of the year. In contrast, income prospects and households' willingness to buy dropped slightly over the previous month.
GfK also reported that the potential impact of the Cyprus crisis is likely to be reflected in the next survey, as the latest study had been already completed before the situation escalated. In addition, GfK projects private consumption to increase 1.0% this year.
FocusEconomics Consensus Forecast panellists broadly share GfK's assessment and anticipate private consumption to expand 0.9% this year, which is unchanged from last month's estimate. For 2014, panellists see private consumption growing 1.1%.
Author: Ricardo Aceves, Senior Economist