Consumer sentiment in Germany maintains upward trajectory

Consumer sentiment in Germany will continue to recover in the new year. A recent survey by the GfK institute showed that the government's actions aimed at mitigating the consequences of soaring energy prices appear to have been effective.

According to the institute, closer to January, the consumer sentiment index rose to -37.8 from December's forecast of -40.1. The indicator also turned out to be better than the estimates of analysts polled by Reuters, who had expected -38.0.

Nevertheless, while the situation is gradually improving, the level of consumer confidence is still low. In October, a mark of - 42.8 was recorded. The value turned out to be the lowest in more than ten years.

According to Rolf Buerkl, GfK consumer expert, the recovery is still unstable and could be undermined, for example, by a significant increase in energy prices if the geopolitical situation worsens.