Consumer sentiment in Germany is anticipated to fall again in March, after an increase in February amidst a rapid increase in Covid-19 infection rates and soaring inflation.
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Rolf Buerkl, consumer expert at the market-research group GfK stated that the inflation rates continue to hover at a record-high level, with price trends remaining at a heightened level.
GfK’s forward-looking consumer sentiment index expects among households to drop to -8.1 in March from-6.7 in February.
Economic expectations jumped to 24.1 in February from 22.8 in January. The forecast for the coming months is positive after deciding to start easing pandemic restrictions.
Meanwhile, the income expectations indicator plunged to 3.9 in February from 16.9 in January, the lowest level in more than a year.
Inflation is the greatest current threat to income forecasts as high prices for energy and goods are deteriorating purchasing power. Propensity to buy fell to 1.4 in February from 5.2 in January.