GfK German consumer sentiment indicator set to rebound in February 2017

Germany’s consumer sentiment is beginning 2017 on quite a positive note. The economic and income expectations and propensity to purchase have improved. After recording 9.9 points in January, the overall GfK consumer climate indicator is expecting 10.2 points for February 2017.

At the start of 2017, German consumer mood rebounded further. For instance, economic expectation rose for the fourth consecutive time to their highest level in one and a half years. Thus better income prospects, propensity to purchase rose considerably in January.

The economic indicator has now reached 21.6 points after rising 5.2 points. This is the fourth consecutive rise and is at the highest point since June 2015. According to consumers, the strong economic growth of Germany is expected to continue. This is underpinned by Destatis’ calculations of the first economic growth that showed the GDP grew 1.9 percent in real terms last year. This is the strongest growth measured since 2011.

Meanwhile, income expectation has seen further moderate growth at the beginning of 2017. The indicator was up 2.7 points and is standing at 58.3 points. The slight upward trend has thus continued. When compared with the previous year, income sentiment is up by 11 points.

The GfK consumer climate is continuing with its moderate upward trend. Even if domestic conditions such as rising income, high employment and low interest rates stay favorable, there are still several risks to a good consumer mood.