BERLIN, June 3 (Xinhua) -- Consumer sentiment in Germany recorded its fifth consecutive monthly growth in June, reaching its highest level since August 2021, according to a survey published by the country's retail association on Monday.
The positive trend indicates a potential recovery in private consumption and, ultimately, the overall economic situation, according to the German Retail Federation (HDE). However, the association expects "only a modest economic improvement" in the first half of 2024.
After Germany experienced a slight recession last year, it saw a quarterly economic increase of 0.2 percent in the first quarter. According to the country's Federal Statistical Office, exports and capital formation were the main contributors to this growth, while private household spending, typically a pillar of the German economy, had not recovered despite falling inflation.
The overall development is "still characterized by sluggish demand," the German Council of Economic Experts said when presenting its latest forecast in mid-May. The council expects the country's economy to grow by only 0.2 percent in 2024, before increasing by 0.9 percent next year.
The experts anticipate that real income growth in the country will slowly stimulate private consumption expenditure, thereby boosting the total economy, which "is stabilizing and should pick up slightly throughout this year." ■
