BERLIN, July 24: German consumers were more optimistic heading into August, a key survey showed Wednesday, as rising incomes appeared to compensate for recent high inflation.
The survey of some 2,000 respondents showed a "noticable" improvement, the pollsters GfK and the Nuremberg Institute for Market Decisions (NIM) said in a statement. The forward-looking indicator rose by 3.2 points on July to minus 18.4 points, they said.
The improvement in the consumer climate was "primarily due to increased income expectations", said NIM consumer expert Rolf Buerkl.
A "euphoria" created by the recent men's European football championships, which were hosted in Germany, also "very probably" played a roll in boosting sentiment, Buerkl said.
"It remains to be seen whether this effect is sustainable or just a short-term flare-up," he said. A lasting improvement in the consumer climate relied not just on rising real wages but "planning certainty" for households after the turbulence of high inflation, Buerkl said.
German consumers were "significantly" more optimistic about their wage prospects for the coming 12 months, according to the survey.
The wage indicator rose 11.5 points in July to 19.7 points, the highest reading since October 2021, just as inflation was starting to gain momentum. —AFP
