Consumer sentiment in Germany will improve slightly in December as households show more willingness to spend on Christmas gifts and festive celebrations, though less rosy income prospects are preventing a stronger recovery, surveys showed.<\/p>\n
The consumer sentiment index, published by the GfK<\/a> market research institute and the Nuremberg Institute for Market Decisions (NIM)<\/a>, rose to -23.2 points for December from -24.1 points the month before, in line with analysts’ expectations.<\/p>\n Overall sentiment was boosted by the second consecutive monthly increase – a 3.3-point rise – in consumers’ willingness to buy, bringing it to the same level as a year earlier at -6.0 points.<\/p>\n “Consumer sentiment<\/a> is currently at almost exactly the same level as last year. This is good news for retailers with an eye to year-end business: The data points to stable Christmas<\/a> sales,” said Rolf Buerkl, head of consumer climate at NIM.<\/p>\n “On one hand this shows a certain stability in consumer sentiment but on the other hand, it shows that consumers do not expect a drastic recovery in the short term,” he added.<\/p>\n Retailers Brace For Subdued Festive Season<\/p>\n A different survey by the Ifo Institute showed that around one in four companies in the retail sector anticipated business will be poor this Christmas season.<\/p>\n \u201cRetailers’ expectations are subdued. Many of them are entering the most important sales period of the year without any great hopes,\u201d said Klaus Wohlrabe, head of surveys at Ifo.<\/p>\n Just under half of the companies expect average business, while only around 10% of retailers are forecasting bumper Christmas sales.<\/p>\n