consumer confidence rose for the month of May, according to a market research survey released on Thursday.
The survey was published jointly by the GfK market research company and the Nuremberg Institute for Market Decisions (NIM).
What did the survey find?
According to the survey, consumer confidence rose by 3.1 points to -24.2 heading into May.
The increase was higher than expected, with experts interviewed by the Reuters news agency foreseeing a of -26.
This was the third monthly increase in a row, with GfK saying that its barometer hit a “two-year high.”
The increase was driven by of the .
“Wage increases combined with a recent decline in the inflation rate form the basis for increased purchasing power among private households,” said Rolf Bürkl, a NIM consumer expert.
Bürkl said consumers in Germany were purchasing more expensive products like cars and furniture.
However, he stressed that Germans’ propensity to buy was still substantially lower than before the start of the , which saw a stark drop in consumption due to lockdowns in 2020 and 2021.
The German economy has also been marred by inflation and rising energy prices since the start of .
German economy sees mildly improving indicators
The survey came amid a number of improved indicators for Europe’s largest economy, which has grappled with and lagging growth.
On Wednesday, , up 0.2 percentage points from the previous prediction. It cited rising private consumption as the reason for the increase.
The inflation outlook for 2024 was also lowered from 2.8% to 2.4%.
“The fall in inflation will lead to consumer demand — people have more money in their wallets again, and will spend this money,” said, referring to the change in Berlin’s economic outlook.
sdi/sms (AFP, Reuters, dpa)
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