Consumer morale in Germany increased more than forecast moving into March, as shoppers became more positive that lockdown restrictions would soon be relaxed.

According to the GfK research institute, its consumer sentiment index – based on a poll of around 2,000 people – increased to -12.9 points from a revised -15.5 this month.

This marks the first monthly rise since October, surpassing a Reuters forecast for -14.3 points.

The coronavirus infection rate in Germany gradually declined in the first weeks of the year, but has come to a halt recently, making it tougher to ease restrictions.
Chancellor Angela Merkel and state leaders are due to hold talks regarding a progressive easing of lockdown measures, currently in place until 7 March.
With bars, restaurants and entertainment venues shuttered since November, stricter measures came into effect in mid-December closing schools and non-essential shops and services.
GfK researcher Rolf Buerkl stated consumer morale had rallied somewhat from the decision to tighten restrictions in December.
“The recent dip in infection rates and the launch of the vaccination program are fuelling hopes of a speedy easing of measures,” Buerkl added.
However, a further recovery in consumer sentiment will only occur if lockdown measures are lifted, permitting shops, restaurants and hotels to re-open, he went on to say.
The chances of a quick recovery will dwindle if the lockdown measures continue beyond 7 March, with tough times for consumers continuing.
The consumer climate indicator predicts the development of real private consumption in the subsequent month.
An indicator reading over zero marks year-on-year growth in private consumption, whereas a reading below zero indicates a decline compared with the same period the previous year.
According to the GfK research institute, a one-point change in the indicator signals a year-on-year change of 0.1% in private consumption.