Consumer climate improving slowly * GfK consumer climate survey in September 2003

BERLIN 29 September (PROTEXT/ots) - German consumers arecautiously optimistic about the economic development and theirpersonal future. While consumers had been more positive aboutgeneral economic development for three months, in September theywere more reserved again. The economic outlook indicatordecreased slightly by 1.4 points for the first time since May2003 and currently stands at -10.6. In August, consumers weresomewhat sceptical with regard to their income expectations.Their statements in September were altogether more hopeful: witha plus of a good 5 points, the economic expectations indicatormore than compensated for the losses of the previous month. Atits current level of 0.8, the indicator is very close to itslong-term average value of 0 points. The optimism shown byconsumers with respect to their income expectations has so farnot extended to their propensity to buy. It is true that theindicator value was up by 1.6 points in September to 31.6.However, talk of a recovery would be premature, since the valueis still at a low. The latest consumer climate indicators showthat the overall consumer climate indicator continues tostabilize, but there is still no evidence of any dynamic change.It is expected to reach 5.3 points for October this year, 0.3points more than the revised value of the previous month. For aslong as there are no identifiable, positive signs from either theeconomy or the labour market, which will bring about afundamental economic upturn, we are unlikely to see any dynamicconsumer climate trends. However, if the discussions regardingtax and social security reforms are resolved with clear,transparent statements for consumers, this will speed uprecovery of the consumer climate. Contakt: Dr. Ulrike SchönebergTel. +49 (0)911 395 2645 ulrike.schoneber@gfk.de Page 2/4

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