Consumer climate on the up

Findings of the GfK consumer climate survey in November 2003

Nuremberg, Germany 27. 11. 2003 (ots/PROTEXT) - Germanconsumers appear to be getting in the pre- Christmas spirit,expressing hope that the economy is finally recovering and thattheir personal finances are improving. In view of this slightlymore positive mood in November, retailers may yet be pleasantlysurprised by their Christmas sales.

Like the financial analysts (ZEW) and companies (ifo),consumers are once again displaying more optimism in Novemberwith regard to the economy and their personal expectations ofincome and planned purchases. For the first time in months, allof the consumer mood indicators have improved, increasing theoverall consumer climate indicator more than in previous months.

It would, however, be premature to speak of a far-reachingtrend towards making larger purchases. The situation is moredelicately balanced than that and could easily tip back to thatof previous months. Apart from the uncertainties resulting fromthe debate about political reform, it is mainly high unemploymentthat is preventing consumers from completely abandoning theirpurchasing reticence.

Outlook for the consumer climate: gradual upward trend

The positive development of all the consumer indicators is aclear sign that the consumer climate is improving further. Theindicator for December is predicted to reach a value of 5.7points. This will only be an increase of 0.3 points on November,but the probability of improved trade in the run-up to Christmasis still higher than has been assumed in recent months.

The next few weeks should provide an indication of whetherpre-Christmas optimism with regard to an economic upturn andconsequently a revival of the labour market proves to befounded. ots Original Text Service: GfK Group Internet:http://www.presseportal.de Contact: Ulrike Schoeneberg, phone +49 (0)911 395 2645,ulrike.schoeneberg@gfk.de

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