German shoppers buoyant as public life revs up again

FRANKFURT: German consumers are feeling more optimistic about the economy heading into July as the country benefits from low coronavirus rates and eased restrictions, a key survey said Friday.

Pollster GfK's forward-looking barometer rose to minus 0.3 points from minus 6.9 points a month earlier.

Germany began easing restrictions in May and has now reopened restaurants, shops, pools and museums, with the the number of new cases over a seven day period dipping below seven per 100,000 people.

"We are increasingly leaving the lockdown behind us," GfK consumer expert Rolf Buerkl said in a statement.

"Sharply declining incidence rates and significant progress in vaccination allow for more and more extensive relaxations and openings. Moreover, holidays are now possible again. This makes for increasing optimism," he said.

The survey of some 2,000 respondents also found that shoppers were significantly more upbeat about the prospects for Europe's top economy than last month.

The index for economic expectations jumped by 17.3 points to 58.4, its highest level in 10 years.

Income expectations also rose to their highest level since February 2020, before the onset of the pandemic.

Consumers were moderately more likely than last month to splash out on large purchases, though they were "still somewhat cautious", GfK said.

The pollster also noted that some sectors, such as the events industry, remain "severely restricted" in Germany, and that continued mask-wearing in shops was "likely to limit the enjoyment of the shopping experience".