Germany: Gfk consumer confidence improves to -33.9 in February, but remains below expectations

The index of Gfk consumer confidence in Germany has improved 3.7 points in its forecast for February, standing at -33.9 vs -37.6 in January (revised from -37.8). The result, however, disappoints market expectations, which expected it to improve to -33.

The indicator shows its best result for February since August 2022, when it stood at -30.9. According to Gfk, consumer confidence in Germany begins 2023 with a bit more optimism. Both economic and income expectations continue to recover and rise notably. On the other hand, the propensity to buy continues its roller coaster of the last few months and is currently losing slightly.

“With the fourth consecutive increase, the positive trend in consumer confidence is consolidated. Although the level remains very low, the pessimism has been tempered recently“, Explain Rolf Bürkl, consumer expert at GfK. “The fall in energy prices, such as those for gasoline and heating oil, has made consumer sentiment less pessimistic. However, 2023 will continue to be difficult for the national economy. Private consumption will not be able to contribute positively to overall economic development this year. This is also indicated by the still very low level of the indicator”.

EUR/USD Reaction

EUR/USD continues to recover ground from yesterday’s early American session lows at 1.0846. So far on Tuesday, the pair has risen from around 1.0865 to 1.0892, the new high of the day reached after the German Gfk data. At time of writing, the euro is trading against the dollar at about 1.0889, gaining 0.19% daily.