German consumer sentiment is tipped to rise slightly in March owing to wage increase expectations, according to a GfK survey released today.
GfK expects its household confidence index to reach six points next month, from a revised 5.8 points in February, a statement said.
The Nuremberg-based research group said German consumers felt salaries would increase as unemployment falls in the largest European economy, though it also noted that shoppers' propensity to make large purchases had slipped a bit.
GfK polls some 2,000 people each month and makes a forecast for the coming month based on the results. It said that historically low interest rates had encouraged shoppers to buy on credit rather than save their money.
Concern over inflation, which reached 2% in Germany last month, was less of a consideration, the latest poll found, and GfK said it expected domestic consumption to increase by 1.5% in 2011.
Germany suffered its worst post-war recession in 2009 but bounced back a year later to post its strongest growth since the country was reunited in late 1990. The government has forecast further growth of 2.3% this year.
