German consumer confidence seen stable in March but at low levels - GfK

27th Feb 2024 07:30

(Sharecast News) - German consumer sentiment was tipped to stabilise at a low level next month as consumers expressed concerns about Europe's biggest economy, according to a widely-watched survey published on Tuesday.

The consumer sentiment index published jointly by GfK and the Nuremberg Institute for Market Decisions (NIM) rose slightly heading into March, to -29.0 from a revised -29.6 the month before, and in line with expectations.

"There is great uncertainty among consumers. In addition to the constantly rising prices, the weaker economic forecasts for the German economy this year are likely to be another important reason for this," said Rolf Buerkl, consumer expert at the NIM.

"For the time being, Germany must continue to wait for an economic recovery," he said. The government recently slashed its economic growth outlook for this year to just 0.2% from 1.3% previously.

The survey found that consumers' willingness to buy was still extremely low as households remain cautious about making major purchases amid high inflation and geopolitical uncertainties. This was despite income expectations increasing sharply to -4.8 from -20 in February.

Reporting by Frank Prenesti for Sharecast.com