BERLIN, Dec 20 Reuters German consumer sentiment is set to improve with the start of the new year, though whether the rise marks the beginning of a sustained recovery from a very low level for Europe39;s biggest economy remains to be seen, a survey showed on Wednesday.

The consumer sentiment index rose to 25.1 points heading into January from a revised 27.6 the month before and above expectations of analysts polled by Reuters for a 27.0 reading.

A jump in income expectations in particular helped push up overall sentiment, while both the willingness to buy and positive economic expectations also increased, according to the survey of around 2,000 consumers published by the GfK institute and the Nuremberg Institute for Market Decisions NIM.

It remains to be seen whether the current rise is the beginning of a sustained recovery in consumer sentiment, said Rolf Buerkl, consumer expert at the NIM.

Consumers are still very worried, he added.

Geopolitical crises and wars, sharply rising food prices and discussions about the national budget for 2024 continue to cause uncertainty, said Buerkl.

JAN 2024

DEC 2023

JAN 2023

Consumer climate

25.1

27.6

37.6

Consumer climate components

DEC 2023

NOV 2023

DEC 2022

willingness to buy

8.8

15.0

16.3

income expectations…