A survey showed that German consumer sentiment improved more than expected as July approached as consumers became more optimistic and wanted to buy after Europe’s largest economy lifted public isolation measures amid a significant drop in coronavirus infections.
The GFK institute said its consumer sentiment index, based on a survey of nearly 2,000 Germans, rose to -0.3 points, its highest since August last year and up from a revised -6.9 points the previous month. This reading exceeded Reuters expectations for a smaller increase to -4.0 points.
Consumers are much more optimistic about their personal income as well as economic development in general. Shoppers’ expectations for the economy hit a 10-year high of 58.4.
But German buying only increased at a modest pace.
“Despite the opening or withdrawal of restrictions, a number of industries – particularly in the service sector – remain severely restricted,” Rolf Burkel, a consumer expert at GFK, said in a statement.
“This makes a significant recovery in private consumption in the second half of 2021 more likely.”