The GfK Consumer Climate Indicator in Germany rose to -33.9 heading into February of 2023 from a marginally revised -37.6 in January, compared with market expectations of -33.0. The latest reading marked the fourth straight month of improvement in sentiment amid a fall in energy prices, with both income expectations (-32.2 vs -43.4) and economic conditions (-0.6 vs -10.3) increasing noticeably. Meanwhile, the willingness to buy fell slightly (-18.7 vs -16.3), as consumers expect higher heating bills in the coming months. The index hit its record low of -42.8 in October 2022. “Falling energy prices have ensured that consumer sentiment is less gloomy,” said Rolf Bürkl, GfK consumer expert. “Nevertheless, 2023 will remain difficult for the domestic economy. Private consumption will not be able to positively contribute to overall economic development this year. This is also signaled by the still very low level of the indicator.