By Mucahithan Avcioglu
ISTANBUL (AA) - The German consumer confidence improved at a "low level" in February, driven by a minimum wage increase and falling inflation expectations, according to a new report on Wednesday.
German market researcher GfK published its Consumer Climate Index report for February in collaboration with the Nuremberg Institute for Market Decisions (NIM).
The report stated that the Consumer Climate Index rose to minus 24.1 points in February from minus 26.9 points in January, while the expected rate was minus 25.5 points.
The income expectations index rose significantly by 12 points this month, reaching 5.1.
Consumer spending sentiment, however, increased by 3.5 points to minus 4 this month.
Rolf Burkl, Head of Consumer Research at NIM, stated that the increase in the minimum wage and reduced concerns about inflation supported consumer income expectations.
Despite the increase in consumer sentiment, Burkl emphasized that the overall index level remains low, noting that caution is needed regarding the sustainability of the improvement trend.
Approaching the question of whether the positive trend will be permanent with caution, Burkl warned that the risk of escalating geopolitical tensions and trade conflicts could quickly spoil the atmosphere.
"However, it remains to be seen whether the positive trend can be sustained in the coming months. Ongoing geopolitical tensions or an escalation of trade conflicts could quickly tip the mood back into a negative direction. This means that the current upturn remains still fragile," Burkl said.