DES GB2012 E

ACCORDING TO FORECASTS BY THE GERMAN SOCIETY FOR CONSUMER RESEARCH GFK (GESELLSCHAFT FÜR KONSUMFORSCHUNG ), PRIVATE HOUSEHOLD SPENDING IN GER- MANY IS SET TO INCREASE BY 1.0% IN REAL TERMS IN 2013. PRIVATE CONSUMPTION IS THUS PROVIDING A SUBSTANTIAL CONTRIBUTION TO THE STABILITY OF THE GERMAN DOMESTIC ECONOMY. n light of low interest rates and concern about the future of the euro, consumers are tending toward making high value purchases. Moderate growth is forecast for retailers. According to the GfK Consumer Climate, German consumers started 2013 in posi- tive spirits with all indicators showing an upward trend at the beginning of the year. Despite economic development noti- ceably slowing down in the winter months of 2012, it seems as though, from a con- sumer perspective, a turning point has been reached. Economic prospects are currently improving. This sentiment is also shared by business, as demonst- rated by the Ifo Business Climate Index, which increased for the third consecutive time in January. Buoyed by the positive situation on the labour market, German consumers are expecting their income to increase in the near future. Perceived job security is also giving consumers the necessary planning security for major purchases. At the same time, savings and loan interest rates are at a record low. This is particularly good news for real estate, which is seen by consumers as a safe alternative for their Price expectation Source: GFK I EU-Commission Fear of inflation eases slightly I Indicator points Price expectation SHOPPING { 22 } DES ANNUAL REPORT 2012 Consumption 2013

DES GB2012 E

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