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

Textiles | On 25th Sep 2017

SVP Group to build $300 mn spinning plant in Sohar

ShriVallabh Pittie Industries (SVP) Group, a diversified yarn...

Apparel/Garments | On 25th Sep 2017

Vietnam textile sector to gain if EU FTA gets ratified

Experts feel the Vietnam-European Union (EU) free trade agreement...

Courtesy: Business Wire

Textiles | On 25th Sep 2017

Invista to use ADN technology at joint project in France

Invista, a leading producer of chemical intermediates, polymers, and...

Interviews View All

Akash Khetan
Narayan Tex Fab

I find it hard to find professionals in Surat

Krishnanand Tripathi
Textrade International Ltd

We believe in vocational education for entry-level employees, offering...

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Urs Stalder
Sanitized AG

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

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Yash P. Kotak
Bombay Hemp Company

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

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

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

September 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
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

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
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

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
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

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
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


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