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back to index backEUROtalk June,  2017


Consumer confidence improves

Consumer confidence in Europe's biggest economy is set to rise for the fourth consecutive month in June as Germans continue to shake off fears about the US presidency of Donald Trump and Brexit. Nuremberg-based market research institute GfK said its forward-looking consumer confidence indicator will jump to a higher-than-forecast 10.4 points in June from 10.2 in May.

"From the perspective of consumers, the engine of the German economy is running increasingly smoothly," GfK said in its report. "Neither uncertainty over the economic political course in the United States nor the upcoming Brexit negotiations have had any impact thus far," it said.

The GfK report underlines economists' projections of the key role of consumer spending in driving economic growth this year, as a result helping to offset any fallout for the nation's trade figures from the slew of global political and economic uncertainties.

The institute expects private consumption to grow by at least 1.5 per cent this year, boosted by rising wages, low inflation, a solid job market, record low interest rates and an optimistic outlook.

Source: Deutschland.de - GAI





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