Germany: Consumer confidence climbs to highest level in more than five years
April 30, 2013
Despite Eurozone jitters, consumer confidence remains buoyant amid positive developments in the labour market. In May, the GfK forward-looking consumer confidence indicator jumped to 6.2 points from a revised 6.0 points registered in April (previously reported: 5.9 points). The reading represents the highest level since October 2007 and overshot market expectations that had the index remaining at 5.9 points.
While the overall consumer confidence index refers to May, GfK also published three-sub indicators, which refer to April. According to GfK, consumers' income expectations and willingness to buy improved over the previous month, reflecting a more optimistic opinion about the labour market and better income prospects for the year ahead. On the hand, economic expectations deteriorated over March, with the sub-indicator falling for the first time this year. The print mostly reflects consumers' view of the recent news that the Eurozone will remain in recession this year.
FocusEconomics Consensus Forecast panellists broadly share GfK's assessment and anticipate private consumption to expand 0.8% this year, which is unchanged from last month's estimate. For 2014, panellists see private consumption growing 1.1%.
Author: Ricardo Aceves, Senior Economist