BERLIN, Dec 19, 2024 (BSS/AFP) - German consumers are heading into 2025 feeling slightly more confident, a key survey showed Thursday, but morale remained low as Europe's largest economy looked stuck in stagnation.

The forward-looking indicator, published by pollsters GfK and the Nuremberg Institute for Market Decisions (NIM), climbed to minus 21.2 points for January, up 1.8 points on the previous month.

The survey of around 2,000 people showed that consumer confidence remained "at a very low level", NIM consumer expert Rolf Buerkl said.

The rise in the indicator "only partially compensates for the declines suffered previously", Buerkl said.

A durable improvement in the mood among households was "still not in sight", he said.

Endemic consumer pessimism could be traced back to "high food and energy prices" after the recent inflation wave and growing concerns about job security, Buerkl said.

The German economy was headed towards its second straight year in recession, according to the government's own estimates.

Sharply risen energy costs have weighed not just on consumers but businesses, particularly in Germany's crucial manufacturing sector.

The difficult times for industry have seen a wave of job cuts announced, with the axe falling heavily on workers in the auto sector.

German business morale has slipped to its lowest level in over four years, said a survey of around 9,000 companies published Tuesday.

The situation has not been helped by a political crisis in Berlin, where Chancellor Olaf Scholz's coalition collapsed in November, precipitating new elections in February.

The time it will take to negotiate and form a coalition after the vote next year means it could be months before any new government can present businesses with a plan for the economy.