German consumer sentiment to rise in March: GfK

Wednesday, 23 February 2011 00:01 - - {{hitsCtrl.values.hits}}

FRANKFURT, (AFP) - German consumer sentiment is tipped to rise slightly in March owing to wage increase expectations, according to a GfK survey released on Tuesday.

GfK expects its household confidence index to reach six points next month, from a revised 5.8 points in February, a statement said.

The Nuremberg-based research group said German consumers felt salaries would increase as unemployment falls in the largest European economy, though it also noted that shopper’s propensity to make large purchases had slipped a bit.

GfK polls some 2,000 people each month and makes a forecast for the coming month based on the results.

It said that historically low interest rates had encouraged shoppers to buy on credit rather than save their money.

Concern over inflation, which reached two percent in Germany last month, was less of a consideration, the latest poll found, and GfK said it expected domestic consumption to increase by 1.5 percent in 2011.

Germany suffered its worst post-war recession in 2009 but bounced back a year later to post its strongest growth since the country was reunited in late 1990.