By Ed Frankl
German consumer sentiment improved for the fourth month in a row, as consumers grow more confident about the economy and their income, according to February figures from German retail association HDE.
The HDE said its consumer barometer jumped to 91.93 in February from 88.54 in January, though despite the increase, sentiment hasn't returned to the level it was prior to Russia's invasion of Ukraine.
The results come after the German economy ministry in January revised up its GDP forecast for 2023, expecting an expansion of 0.2%, from a 0.4% decline under previous forecasts.
"The renewed and significant brightening of consumer sentiment increases the likelihood that the overall economic situation could improve towards the summer as expected, and that private consumption will be one of the central pillars of the economic recovery," the HDE said.
However, with falling real wages due to inflation, it remains uncertain whether increased income will stimulate consumption, the association said.
The HDE also flagged that, amid high energy prices, consumers' propensity to save is also increasing, and that the scope of consumers' disposable income will be decisive for an upturn in private consumption in the coming months.
Write to Ed Frankl at edward.frankl@dowjones.com
(END) Dow Jones Newswires
02-06-23 0448ET
