Germany consumer sentiment has stabilised after a five-month slide, helped by government efforts to limit the damage from the global economic crisis on employment, the GfK research group said today.
GfK said its consumer confidence index was steady at 3.2 points for April.
GfK acknowledged that consumer confidence might just be taking a breather from a downward trend that began with November's reading but noted that both economic and personal income expectations had improved among the roughly 2,000 people surveyed.
Although German unemployment edged higher to 8.7% in the latest figures, the impact of the global economic slump has been partly offset by a government plan that subsidises shorter working hours.
The German Ifo economic institute yesterday said that business confidence soared to near a two-year high in March as Europe's biggest economy emerged from an especially cold and snowy winter.
That broad-based increase suggested that Germany's export-oriented economy should continue to improve, a development which GfK said has boosted household sentiment as well.
Consumer sentiment has also been underpinned by government measures like an increase in family allowances, while rising fuel prices have tempered the good mood somewhat, the institute said.
Economic activity would therefore benefit relatively little from domestic demand this year, when the government anticipates growth of 1.4% after a massive contraction of 5% in 2009.
