Germany Consumer Confidence

Germany

Germany: Consumer confidence jumps to highest level in over seven years

June 25, 2014

The forward-looking consumer confidence indicator elaborated by the GfK climbed from a revised 8.6 points in June (previously reported: 8.5 points) to 8.9 points in July. The reading, which marked the highest level since December 2006, beat market expectations of 8.6 points.

In addition to the overall consumer confidence indicator, which projects confidence for the coming month, the GfK elaborates three sub-indicators which refer to June. According to GfK, consumers’ economic expectations hit the highest level in three years and their willingness to buy increased notably compared to May. The improvement in households’ willingness to buy was buoyed by the European Central Bank's recent decision to cut interest rates, which has affected Germans’ propensity to save and increased their willingness to spend more money. That said, the income expectations sub-indicator was virtually unchanged over the previous month.

FocusEconomics Consensus Forecast panelists expect private consumption to expand 1.3% this year, which is unchanged from last month’s estimate. For 2015, panelists see private consumption growing 1.6%.


Author:, Senior Economist

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Germany Consumer Confidence Chart


Germany Consumer Confidence July 2014

Note: GfK Consumer Climate Index.
Source: The GfK Group.


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