German consumer confidence is set to improve in July as the country eases the lockdown restrictions, monthly survey results from GfK showed on Friday.

The forward-looking consumer sentiment index rose more-than-expected to -0.3 in July from revised -6.9 in June. The reading was the highest since August 2020. The expected score was -4.0.

In June, the economic and income expectations increased significantly and the propensity to buy showed moderate growth.

Sharply falling incidences and significant advances in vaccination allow more extensive loosening or opening of the economy, Rolf B?rkl, GfK consumer expert, said.

In addition, vacation is now possible again. This ensures increasing optimism, which is also expressed in better consumer sentiment, added B?rkl.

Economic expectations rose sharply in June as consumers were very confident about the general economic situation in Germany. The economic expectations index rose 17.3 points to 58.4 in June. This was the highest score since February 2011.

The income expectations index advanced noticeably by 14.6 points to 34.1 in June. Income sentiment last recorded a better level in February 2020.

The falling incidence figures allow openings in outdoor and indoor restaurants. A number of employees will leave short-time working and improve their income position.

The propensity to buy gained strength from income prospects. The indicator rose 3.4 points to 13.4 points in June.

The survey results are based on around 2,000 consumer interviews carried out on behalf of the EU Commission. The survey was conducted between June 3 and 14.

The material has been provided by InstaForex Company – www.instaforex.com

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