German consumer morale climbs on brighter outlook – Capital Business

FRANKFURT, Germany, Feb 24 – German consumers are feeling more optimistic heading into March, a key survey found Friday, as hopes grow that Europe’s biggest economy would skirt a recession.

Pollster GfK said its forward-looking survey of around 2,000 people climbed 3.3 points to reach minus 30.5 points for March, the fifth consecutive monthly increase.

“Lower prices for energy, but also reports that a recession in Germany can be avoided this year after all, are causing optimism to return very slowly,” said GfK consumer expert Rolf Buerkl.

The survey found that respondents were more optimistic about their income prospects as well as for the economy, and were also slightly more likely to splash out on big purchases than a month earlier.

Despite the recent rebound, GfK said the index remained at a low level overall, suggesting that consumer spending would not be a driver of economic growth this year.

The German government initially forecast that the economy would shrink in 2023, after Russia’s war in Ukraine sent energy costs surging and inflation reached new heights.

But Europe’s economic powerhouse has proved surprisingly resilient, in part thanks a massive government support package and mild winter weather that helped bring down energy prices.

The government said in January that it now expects economic growth of 0.2 percent this year.

The more upbeat mood in Germany was also reflected in two other surveys this week, which showed improved confidence among both business leaders and investors in February.

Jay Ndungu

Jay is a computer scientist and journalist with a passion for the intersection of technology and society. He has a background in computer science, developing a deep understanding of the technical aspects of the industry, including programming languages and software development methodologies. Currently, He writes for Nairobi Times, covering a wide range of topics including technology, politics, sports, and entertainment. With his unique combination of technical knowledge and journalistic experience, Jay brings a unique perspective to the stories he covers, able to explain complex technical concepts in an easy-to-understand manner. His work is dedicated to bridge the gap between technology and society, and to make people more aware of the potential of technology to make the world a better place.

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