BERLIN, June 25 (Reuters) - German consumer sentiment
improved more than expected heading into July as shoppers became
more optimisitc and willing to buy after Europe's biggest
economy lifted lockdown measures as coronavirus cases fell
sharply, a survey showed on Friday.
The GfK institute said its consumer sentiment index, based
on a survey of around 2,000 Germans, rose to -0.3 points, its
highest level since August last year and higher than a revised
reading of -6.9 points in the previous month.
The reading beat a Reuters forecast for a smaller rise to
Consumers were far more optimistic regarding their personal
income situation as well as overall economic development.
Shoppers' expectations for the economy hit the highest level in
ten years, reaching 58.4 points.
Germans' propensity to buy, however, rose only moderately.
"Despite the opening or withdrawal of restrictions, a number
of industries - especially in the services sector - are still
severely restricted," GfK consumer expert Rolf Buerkl said in a
"This makes a noticeable recovery in private consumption in
the second half of 2021 more likely," Buerkl said.
JULY 2021 JUNE 2021 JULY 2020
Consumer climate -0.3 -6.9 -9.4
Consumer climate components JUNE 2021 MAY 2021 JUNE 2020
- willingness to buy 13.4 10.0 19.4
- income expectations 34.1 19.5 6.6
- business cycle expectations 58.4 41.1 8.5
NOTE - The survey period was from June 3 to 14, 2021.
The consumer climate indicator forecasts the development of
real private consumption in the following month.
An indicator reading above zero signals year-on-year growth
in private consumption. A value below zero indicates a drop
compared with the same period a year ago.
According to GfK, a one-point change in the indicator
corresponds to a year-on-year change of 0.1% in private
The "willingness to buy" indicator represents the balance
between positive and negative responses to the question: "Do you
think now is a good time to buy major items?"
The income expectations sub-index reflects expectations
about the development of household finances in the coming 12
The additional business cycle expectations index reflects
the assessment of those questioned of the general economic
situation in the next 12 months.
(Reporting by Riham Alkousaa
Editing by Joseph Nasr)
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