BERLIN (Reuters) – German consumer morale is expected to continue its slow recovery in April, with fewer households deciding to save even as the country’s economic outlook remains uncertain, according to a survey published on Tuesday.
The consumer sentiment index, published by the GfK institute and the Nuremberg Institute for Market Decisions (NIM), improved slightly in April, to -27.4 from -28.8 (revised) in March, while that analysts polled by Reuters expected -27.8.
A five-point drop in the propensity to save, to 12.4, helped improve overall sentiment, said Rolf Buerkl, consumption expert at NIM.
The sub-indicator, however, remains relatively high: at the same period last year, it was 1.3.
“The recovery in consumer morale is progressing,” said Rolf Buerkl.
“Real income growth and labor market stability are in themselves very good preconditions for a rapid recovery in consumption, but consumers still lack long-term visibility and optimism,” he added. .
A fall in inflation and a clear political strategy on Germany’s development are the only conditions under which consumers could contribute again to the country’s growth, according to the institutes.
(Report by Miranda Murray, French version by Diana Mandiá)
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