German Consumer Sentiment Set to Fly High in July
29 June 2017 - 7:29AM
Dow Jones News
By Emese Bartha
FRANKFURT--German consumer confidence is set to continue its
upward move in July, reflecting Germans' positive view of the
economy and of their own finances, GfK market research group's
monthly survey showed on Thursday.
GfK's forward-looking consumer sentiment index is set to rise to
10.6 points "in a clear uptrend" in July from 10.4 points in June,
GfK said. Economists in The Wall Street Journal's survey expected a
10.4 point reading.
The research institute also confirmed its forecast for real
private consumer spending to grow by around 1.5% in 2017, provided,
however, that Germany is spared from any larger external
shocks.
The strong German consumer confidence reading follows French
consumer confidence data, published on Wednesday, which jumped to
its highest level in 10 years in June. Also German business
sentiment hit a record high level in June, the Ifo institute said
earlier this week.
GfK uses three sub-indexes for the current month to derive a
sentiment figure for the next month.
The economic expectations sub-index rose to 41.3 points in June
from 34.8 points, the fourth rise in a row, hitting the highest
level since July 2014, GfK said.
"Consumers believe that the boom in Germany is gaining traction
despite global economic risks," GfK said, adding that a weak euro,
low oil prices and the European Central Bank's expansive monetary
policy ensure that the economic engine continues to gain pace.
The income expectations sub-index increased to 60.2 points from
58.5 points, hitting the highest level since German reunification.
This upward move is supported by the strength of the German labor
market, with the number of people in employment expected to rise by
more than half a million this year, GfK said.
The propensity to buy sub-index, which reflects consumers'
intention to buy big-ticket items, increased to 57.9 points in June
from 55.7 points in May.
Write to Emese Bartha at emese.bartha@wsj.com
(END) Dow Jones Newswires
June 29, 2017 02:14 ET (06:14 GMT)
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