Change in consumer mood for the better Findings of the GfK consumer climate survey in February 2004

Nuremberg, Germany 25.2.2004 (APROTEXT) - After two months ofpredominantly negative development in the indicators which are abarometer of the consumer mood in Germany, it looks as thoughthe trend may be reversing. In January, consumers still feltinsecure due to discussions about the reform of the Germanpension and healthcare systems and recorded largely negativeresponses. GfKs February survey indicates a change in mood forthe first time. All indicators displayed a clear upward trend:the economic outlook indicator with an increase of nearly 8 upto 2.0 points, the income expectations indicator increased by 14points up to -0,3, the buying propensity with a plus of 16points up to 25,7. What is clear is that we are not yet seeing afundamental change. However, the preconditions for improvementin the consumer mood have become more tangible. All the signspoint to this, if consumers more positive expectations regardingincome and also prices are anything to go by. It is alsopossible that the mood in January was more depressed than theactual situation. According to ConsumerScan panel data, retailin January was no worse than in previous years. German consumershad seemingly stored a lot of frustration relating to theendless discussions about tax and social reforms, whichmanifested itself in the January consumer mood indicators. ByFebruary, emotions had cooled to a normal level. We cannotexpect a fundamental improvement until there is a significantrise in the individual consumer mood indicators. This will dependabove all on the current economic optimism resulting essentiallyfrom exports manifesting itself on the labour market andsubsequently on domestic demand. Contact: Dr. Ulrike Schöneberg Tel. +49-911-395-2645ulrike.schoeneberg@gfk.de Page 2

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