Dow Jones Newswires: German consumer sentiment set to improve further in March as recession fears ease

by | Feb 24, 2023 | Stock Market

Consumer confidence in Germany is expected to improve again in March, posting its fifth gain in as many months, as energy prices moderate and concerns over a deep recession fade. Germany’s forward-looking consumer-sentiment index forecasts confidence to increase to minus 30.5 in March from minus 33.8 in February, the highest level since July, according to data from market-research group GfK published Friday.

The reading is broadly in line with the consensus forecast from economists polled by The Wall Street Journal. “Consumer pessimism, which peaked last fall, is fading,” GfK’s consumer expert Rolf Buerkl said. “Despite ongoing crises, such as the war in Ukraine, a weakening global economy, and high inflation rates, consumer sentiment has once again increased noticeably,” he said. The expected increase in confidence for March is supported by the decline in energy prices and the better-than-expected performance of the economy this winter. Still, and despite recent gains, consumer confidence remains at a low level by historical standards, well below the minus 6.7 recorded before the Ukraine war began. “This indicates that private consumption will not be able to positively contribute to overall economic development in Germany this year,” Mr. Buerkl said. GfK uses data from three subindexes from the curr …

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