BERLIN, Jan. 28 (Xinhua) -- Germany's consumer sentiment showed signs of a tentative recovery heading into February, a monthly survey showed on Wednesday, as easing inflation and improved income expectations helped lift confidence after a prolonged period of weakness in Europe's largest economy.
The GfK consumer climate index, a forward-looking indicator of private consumption, is forecast to rise by 2.8 points to minus 24.1 for February, after hitting a nearly two-year low in the previous month amid persistent economic stagnation, according to the market research institute.
"Consumer sentiment has recovered somewhat after last month's sharp decline, but it remains at a low level overall," said Rolf Buerkl, head of consumer climate at GfK, cautioning that it remains uncertain whether the positive trend can be sustained.
According to the survey, rising income expectations were a key driver of the improvement, supported in part by an increase in Germany's statutory minimum wage since the beginning of the year. A moderation in inflation, which slowed to 1.8 percent in December last year, has also helped ease pressure on household budgets and improve consumers' willingness to spend.
Still, Buerkl warned that the recovery in consumer confidence remains fragile, noting that persistent geopolitical tensions and escalating trade disputes could quickly weigh on sentiment again.
The German economy grew by 0.2 percent in 2025 after two years of contraction. Consumer sentiment remained weak throughout the year, with the GfK index hovering between minus 30 and minus 20 points. Economists expect private consumption to contribute to Germany's economic recovery in 2026, as overall output growth is projected at nearly 1 percent. ■
