Consumer sentiment in Germany is projected to increase slightly in February despite rising inflation and a surge in Covid-19 cases.
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GfK’s forward-looking consumer sentiment index projects confidence among households to increase to -6.7 points in February from a revised figure of -6.9 points.
Consumers are again showing some optimism at the beginning of the year, as they are optimistic for a slight alleviation in price trends.
Rolf Bürkl, GfK consumer expert, stated that consumer expectations remain significantly higher than in recent years, further noting that the pandemic situation would ease in the spring.
Economic expectations increased to 22.8 in January from 17.1 points in December, after three straight declines. The income expectation indicator expanded to 16.9 in January from 6.9 in the prior month.
The German economy expanded 2.7% last year and is forecasted to expand even further in 2022, with private spending contributing to the growth.