Consumer uncertainty continues / Findings of the GfK consumer climate survey in March 2004

Nuremberg, Germany 29. 3. 2004 (PROTEXT/ots) - The ray ofhope which shone through in February's survey of the consumerclimate in Germany has already dissipated. In February, Germanswere full of hope with regard to the economic outlook, but byMarch their optimism had already evaporated. The developmentwith regard to income expectations was similar. Nevertheless,the willingness to make larger purchases in the near futureremained much the same as in the previous month, at a level,however, which is significantly below what has been the averagefor many years. The overall consumer climate indicator iscontinuing its sideways trend, which started several months ago.

For the first time in four months the consumer mood is againreflecting the forecasts of financial analysts (ZEW economicoutlook) and companies (ifo business climate). Both agree thatfrom a current perspective the economic outlook for Germany isnot particularly good. All three surveys highlight the fact thatdespite the trend in basic economic indicators being hopeful, themood among consumers is depressed and there is widespread doubtabout any sustainable upturn in the economy.

Overall, the consumer mood is not showing any signs of realimprovement. It currently does not look like there will be anyfundamental change in the situation over the coming months. Thereasons are the above-mentioned uncertainty both with regard tothe macroeconomic picture and the situation of privateindividuals as well as the continued weakness in the labourmarket. In addition, the debate regarding the restructuring ofthe Bundesagentur für Arbeit (Federal Agency for Labour) andinitial reports about associated difficulties are doing nothingto convince consumers of the possibility of an imminentimprovement in the employment policy.

Further information: www.gfk.com

ots Original Text: GfK Group

Dr. Ulrike Schoeneberg phone +49 (0)911 395-2645ulrike.schoeneberg@gfk.de

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