FRANKFURT, Germany, Jan 26, 2024 (BSS/AFP) - German consumers are feeling significantly more pessimistic heading into February, a key survey showed Friday, as the downturn in Europe's largest economy drags on.

Pollster GfK said its forward-looking survey of around 2,000 people plunged to minus 29.7 points, a drop of 4.3 points compared with a month earlier.

Analysts surveyed by financial data firm FactSet had expected another rise in consumer sentiment after two months of increases.

"Crises and wars, as well as persistently high inflation are unsettling consumers and thus preventing an improvement in consumer sentiment," said GfK, which published the survey with the Nuremberg Institute for Market Decisions (NIM).

The survey found that respondents were more downbeat about the prospects for the economy as well as their own income expectations for the months ahead.

Consumers were also "noticeably" more likely than a month earlier to save money and put off making large purchases.

The new year has started off "very disappointingly" for German consumers, GfK added.

The gloomy mood was echoed by the closely-watched Ifo survey on Thursday, which found that German business morale worsened more than expected in January.

The German economy shrank by 0.3 percent in 2023, battered by costly energy, higher interest rates and weaker foreign demand.

A modest recovery is forecast for 2024 as inflation eases and demand picks up, with Germany's Bundesbank central bank predicting growth of 0.4 percent.