The index of consumer confidence Gfk from Germany it has improved 1.1 points on its anticipated reading for April, standing at -29.5 from -30.6 in March (revised from -30.5). The indicator continues its recovery for the sixth consecutive month, although it worsens the expectations of the consensus, which estimated that the indicator would moderate to -29.2.
Despite disappointing forecasts, April is the best result obtained in the Gfk group’s leading indicator in nine months, since July 2022.
He renewed increase in consumer confidence can be mainly attributed to the positive development of the revenue outlook. For the sixth time in a row, the gauge posted an increase, rising three points to -24.3 in March. This is the best value in ten months, when it stood at -23.7 points in May 2022. Despite the positive trend, the level of revenue expectations remains markedly low.
“Revenue expectations are currently benefiting from the recent notable drop in energy prices, especially for gas and heating oil. However, inflation will remain high this year, although it will be somewhat lower than the 6.9 percent measured in 2022 according to the forecasts available so far,” explains GfK consumer expert Rolf Bürkl.
Source: Fx Street
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