German consumers regaining their confidence

NUREMBERG (Germany) 30. 7. 2003 (PROTEXT/ots) - Findings ofthe GfK consumer climate survey, July 2003

The mood among German consumers is gradually brightening. Itlooks as if they are expecting the economy to improve and areassessing their own income expecations accordingly. However, aword of caution is required when interpreting this developmentas the propensity to buy indicator, which had risen strongly inthe previous month, is still on shaky ground. The decision bythe German government to bring tax reforms forward and thecompromise reached by the SPD and CDU/CSU on the reform of thehealth service, have obviously strengthened consumer confidence.

Following a clear rise in consumer expectations with regardto the economy in the previous month, the indicator rose againby 2.6 points this month. The income expectations indicator rosefor the fourth month in a row, up by 1.4 points. By contrast,the propensity to buy indicator failed to build on its stronggrowth in the previous month and fell by 4.2 points.

As with the corporate sector, the growing optimism on thepart of consumers is probably based on hope rather than any realimprovement in consumers actual situations. Consumers areobviously under the impression that something is finallyhappening politically and that measures are being taken to leadGermany out of its current economic difficulties.

Established on the basis of the various consumer moodindicators, the consumer climate is becoming increasingly stableand will rise to 4.5 points in August. It is becomingincreasingly likely that the consumer mood reached its lowestpoint in spring this year and the outlook for privateconsumption picking up slightly in Germany by the end of 2003has improved. Rather than general statements on reform, consumersare now waiting for action and comprehensible results. Afundamental recovery, however, would include in particular atangible, positive development in the labour market.

Forther information: www.gfk.com

Rolf Bürkl GfK Marktforschung

Tel.: +49 911-395 3056

Fax: +49 911-395 4036 e-mail: rolf.buerkl@gfk.de

Dr. Ulrike Schöneberg Public Affairs and Communications Tel.:+49 911-395 2645 Fax: +49 911-395 4041 e-mail:ulrike.schoeneberg@gfk.de

GfK Aktiengesellschaft Nordwestring 101 D-90319 NurembergTel. +49 911 395-0 Fax +49 911 395-2209 www.gfk.de - www.gfk.compublic.affairs@gfk.de

Management Board: Dr. Klaus L. Wübbenhorst (CEO) PetraHeinlein Dr. Gérard Hermet Heinrich A. Litzenroth Dr. Franz X.Merl Wilhelm R. Wessels

Chairman of the Supervisory Board: Peter Zühlsdorff

Commercial register Nuremberg HRB 9398

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