Consumer sentiment in Germany rose slightly in April, but a lasting and significant improvement is still not in sight, according to the HDE retail association.
The latest German Trade Association (HDE) Consumption Barometer rose for the third time in a row in April, but was lesser compared to March, the data showed.
People are anticipating higher income levels while also expecting lower price increases.
The HDE added that there has been a slight increase in the propensity to save amid the latest economic forecasts confirming no dynamic growth this year in the country.
Consumer Sentiment
The mood of consumers in Germany has been brightening since the beginning of the year, but only in very small steps, the HDE added.
As optimism is only slowly returning, no jumps in spending in private consumption are expected in the coming months.
There should be no significant decline in consumption if the positive trend in the HDE consumption barometer continues.
HDE Consumption Barometer
The HDE consumption barometer is based on a monthly survey of 1,600 people on their propensity to buy and save, financial situation and other factors relevant to consumption.
The consumption barometer, created by the Handelsblatt Research Institute (HRI) on behalf of the HDE, has an indicator function for private consumption.
It does not reflect current consumer behaviour, but rather the expected mood in the next three months.
Elsewhere, German retail sales unexpectedly fell in February, data showed, quashing hopes that private consumption could help Europe's largest economy to recover in the first quarter.
Retail sales decreased by 1.9% compared with the previous month in real terms. Analysts polled by Reuters had predicted a 0.3% increase in February.
