Home / Knowledge / News / Textiles / Germany's economic expectations stabilize
Germany's economic expectations stabilize
01
Feb '16
Consumer mood in Germany has changed only slightly in January, while the consumer climate has remained stable. Following a value of 9.4 points in January, the overall indicator is still forecasting 9.4 points for February. While both economic expectations and willingness to buy have risen marginally, income expectations have suffered losses, according to a survey by Gfk SE, Germany's largest market research institute.

The heightened terror threat and the increasingly intense debate on how to solve the refugee crisis have still not had a lasting effect on consumer sentiment, which is currently showing no clear trend and has altered very little in comparison with the previous month, according to the GfK Consumer Climate MAXX survey.

Having ended their six-month decline in December 2015, economic expectations once again stabilized at the start of this year. The indicator climbed slightly by 1.3 points, bringing it to 4.2 points. It has therefore remained in the positive range above its long-term average of 0 points. However, compared with the same time the previous year this still clearly constitutes a minus of 18 points.

According to the survey, despite a number of risks, including the threat of terrorist attacks and the refugee crisis, consumers still believe that the German economy will continue to grow modestly in the next few months. Above all, this improving optimism can be attributed to the extremely strong labor market and rising employment.

The ongoing upswing is also evident from official figures, as according to initial preliminary data from the German Federal Statistical Office, gross domestic product increased by 1.7 percent last year. Experts expect to witness a similar upturn this year.

After enjoying significant gains in the previous month, income expectations once again suffered losses in January. However, the minus of 3.6 points recorded in January is less than the plus of 6.4 points seen in December 2015. The indicator is currently at 47.2 points, which is only slightly lower than the previous year's figure of 47.8 points.

Despite the decline, the income expectations indicator remains extremely high. It is being kept at this level by the increasing rate of employment, strong growth in income, and very low inflation rates.
Looking at recent forecasts for 2016, these favorable conditions are likely to continue in the months to come. For example, according to the latest predictions from the German Institute for Economic Research (DIW), the disposable income of private households is expected to rise nominally by three per cent this year.

The propensity to buy rose once again in January. Although the growth of 3.7 points seems rather moderate, it must be remembered that the indicator was already at an extremely high level before this increase occurred. Its current value of 52.7 points marks its highest level since July 2015, when it stood at 55.4 points.


Must ReadView All

Chinese firm sets up textile-garment chain in Vietnam

Apparel/Garments | On 13th Dec 2017

Chinese firm sets up textile-garment chain in Vietnam

Worldon Vietnam Co. Ltd under the Chinese Shenzhou Group is likely to ...

Courtesy: SATO Global Solutions

Information Technology | On 13th Dec 2017

Sensor networks improve inventory management

Sensor networks like radio frequency identification (RFID) and smart...

CMAI hails review of FTP as 'progressive package'

Apparel/Garments | On 13th Dec 2017

CMAI hails review of FTP as 'progressive package'

The Clothing Manufacturers' Association of India (CMAI) has hailed...

Interviews View All

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Representatives
Textile & apparel industry

GST is a complicated and lengthy process

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Hardik Sanghvi

Idealin Fogging Systems has been engaged in designing and manufacturing...

C Dhandayuthapani

MAG Solvics Private Limited was established in 1991 to design and develop...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

December 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
69.6%
No
12.0%
Skip
18.5%

Total Votes: 92

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
62.0%
No
30.4%
Skip
7.6%

Total Votes: 92

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.0%
No
9.8%
Skip
3.3%

Total Votes: 92

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
81.5%
No
8.7%
Skip
9.8%

Total Votes: 92


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search