The consumer climate has stabilized. This is primarily the result of a marked increase in consumer propensity to buy in December. Conversely, economic and income expectations saw another slight decrease. After a revised 4.4 points in December, the GfK consumer climate forecasts a value of 4.5 points for January 2008.

The prospect of a halt in the downward trend in the economic expectations of consumers has improved. Compared with November, this indicator recorded a minor drop of 0.5 points in December. However, it has fallen for the seventh time in succession since its all-time high in May 2007 and with a current value of 23.6 points, economic expectations are still considerably above the long-term average of 0 points.

After a minor rise in November, income expectations took another slight downward turn in December. The indicator lost 1.7 points to stand at its current level of -1.7 points, putting it back in the negative range. However, the indicator is almost 15 points up on the same time last year.

The propensity to buy indicator recorded a marked improvement, rising by 11.1 point this December to more than offset the previous month's loss of 8.9 points. Nevertheless, the indicator value is considerably down on last year, although the value of 59.9 points recorded in December 2006 was inflated as a result of the imminent rise in VAT.

The improved propensity to buy indicator has, in particular, enabled the consumer climate to stabilize further. The climate is also benefiting from a decrease in the propensity to save. After a revised 4.4 points in December, the indicator forecast is 4.5 points for January 2008.