German consumer sentiment rises, but fears over wars, prices persist

German consumer sentiment should improve in the new year, although concerns about the impact of geopolitical crises and food inflation continue to cause uncertainty, according to a survey published on Wednesday.

The GfK/NIM consumer sentiment index rose to -25.1 points heading into January from a revised -27.6 the month before and above expectations of a -27.0 reading.

Income expectations jumped by 9.8 points to -6.9, the highest reading since July . A further study by NIM showed that a third of respondents thought their financial situation would improve because of changes to pensions and because of “previous or future wage/salary increases”.

"It remains to be seen whether the current rise is the beginning of a sustained recovery in consumer sentiment," said Rolf Buerkl, consumer expert at the NIM.

"Geopolitical crises and wars, sharply rising food prices and discussions about the national budget for 2024 continue to cause uncertainty."

Reporting by Frank Prenesti for Shrecast.com