For the first time in four years, Germans are optimistic about their economy, their incomes and their ability to go shopping, boosted by trust in the new government and expectations from this year's football extravaganza.
GfK's forward-looking consumer sentiment index beat market forecasts by rising to 4.6 for February, up from 4.0 in January. The biggest improvement was in people's willingness to buy, which hit its highest level in nearly five years.
With a rise of more than 18 points, the propensity to buy indicator currently stands at 20.3 points, which is 34 points up on the previous year and represents the highest point since May 2001.
The result is a growing tendency to plan major purchases in the near future. The figures reflect an accumulated need for purchases that had been postponed, as well as imminent World Cup fever, said GfK. Consumers are also probably shopping for larger items ahead of the VAT increase in 2007.
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