Consumers Back on Course to Spend for Germany

02 April 2007

NUREMBERG: The significant hike in value added tax introduced at the beginning of the year has been absorbed by Germany's consumers who are now showing readiness to spend again, according to market research institute GfK.

The pollster's monthly consumer sentiment index is forecast to edge up to 4.4 points in April, from 4.3 points in March. In a statement GfK says: "The period of weakness in the consumer climate appears to have come to an end, at least for now."

GfK also found households were more optimistic about future income than at any time in the past five and a half years.

It adds: "The rosier outlook for jobs also led consumers to hope that the collective wage bargaining and salary rises would be higher in some industries this year than in past years."

Data sourced from Deutsche Welle (Germany); additional content by WARC staff