German consumer confidence will rise in April as energy prices have eased from their all-time highs; However, a full recovery is not in sight in the short term, said a survey by the GfK institute yesterday.
The institute expects its Consumer Confidence Index to improve to -29.5 points in April, after a revised reading of -30.6 points in March, slightly below the expectations of analysts polled by Reuters of -29 points.
April’s reading, up for the sixth month in a row, would show confidence on the mend; however, the pace of growth has slowed.
“The anticipated loss of purchasing power prevents a sustained recovery in domestic demand,” said GfK consumer expert Rolf Buerkl, meaning private consumption is unlikely to contribute positively to the German economy this year.
“This is also indicated by the still very low level of consumer confidence,” added Buerkl. The sub-index measuring earnings expectations was the biggest contributor to the confidence rise, rising to its highest level in 10 months at -24.3 points in March from -27.3 in February.
