German consumer sentiment is seen improving in September, but shoppers are still cautious as unemployment remains high.
Market research company GfK said today its consumer sentiment indicator for September inched up for a third month in a row to 4.8, adding to a raft of positive survey data on prospects for the German economy.
"Consumers continue to believe the German economy will recover. For the third time in a row, economic expectations have improved," Mr Rolf Buerkl, a researcher for the Nuremberg-based GfK, said.
"This future optimism is not without foundation. On the one hand the US economy is strengthening after a period of stagnation and this could give impetus to the German economy."
Sentiment indicators have generally painted a positive picture on the outlook for the German economy, but many analysts are waiting for meaningful evidence that the situation on the ground is improving before calling a real upturn.
The GfK warned the situation remained difficult in Germany.
"This rising optimism is based a lot less on the current difficult situation in the German economy than it is on hopes that things will improve," Mr Buerkl said.
The closely watched Ifo business sentiment index for Augustrose for the fourth consecutive month and the ZEW survey wasalso positive, although Ifo pointed out in its survey thatGerman retailers turned gloomier again during August.
Data from the federal statistics office showed how toughbusiness remained for German shops and department stores.
Retail sales in July fell 1.6 per cent month on month and 2.2 per cent on the year in real, or inflation-adjusted, terms. In the first seven months of this year, retail sales fell by 0.2 per cent versus the same period a year ago.