German consumer confidence will improve in March for a fifth straight month thanks to falling energy prices, a survey by the GfK institute showed on Friday.
The institute said its consumer confidence index improved to -30.5 ahead of March, above February’s revised reading of -33.8, but slightly lower than an average forecast of -30.4 that a Reuters survey of analysts anticipated.
“Recent declines in energy prices and news that experts believe a recession in Germany can be avoided this year mean optimism is slowly returning,” said GfK consumer expert Rolf Buerkl.
However, he warned that the still very low level of the indicator means that private consumption will not be able to contribute positively to Germany’s overall economic development this year.
Among the three sub-indices for the current month that underpin forecasts, income expectations and the economic outlook continued their upward trend. The willingness to buy continued its rollercoaster of recent months, with a new rebound in February after the fall in January.