RTTNews - Tuesday, results of a consumer climate survey by the market research firm GfK Group revealed that German consumer sentiment remained unchanged in May.
The survey's forward-looking overall indicator showed a value of 2.5 points for June, matching May's reading. The consumer climate in the largest Eurozone economy has remained stable since March.
Economic expectations slightly improved for the second month in a row. The corresponding indicator showed a reading of minus 28.3 points in May, up 2.9 points from previous month.
The downward trend in the economic climate appears to have halted, at least for the time being, however, whether this represents a turning point in economic recovery remains to be seen, the GfK said. The firm also noted that consumers are assuming that the worst is over in the ongoing economic downturn.
Meanwhile, income expectations were down in the latest survey after a gain in the previous month. The income expectations indicator dropped 1.3 points in May to reach minus 9.3 points.
On the other hand, the propensity to buy indicator edged up 0.1 points to touch a level of 12.5 points in May.
Increasingly, the indicators have been signaling that the steep contraction of the German economy is bottoming out, giving rise to hopes of reasonable stabilization before the end of the year, the GfK said. That said, the firm added that consumer sentiment has yet to face a real test when confronted by the anticipated rise in unemployment.
The findings are based on the results of the GfK consumer climate MAXX survey, carried out among 2,000 consumers each month on behalf of the EU Commission.
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