Germany: Consumer confidence reaches seven-year high
February 26, 2014
The forward-looking consumer confidence indicator elaborated by the GfK rose from a revised 8.3 points in February (previously reported: 8.2 points) to 8.5 points in March, overshooting market expectations of 8.2 points. The March result represents the sixth consecutive month of improvement and the highest point since January 2007.
In addition to the overall consumer confidence indicator that projects sentiment for the coming month, the GfK presents three sub-indicators that refer to February. According to the GfK, consumers' income expectations improved over the previous month, reflecting households' positive assessment of the labor market. Conversely, consumers' economic expectations and willingness to buy big-ticket items fell slightly compared to the previous month. The GfK added that, "the positive developments provide a good foundation for private consumption continuing to play a key role in economic growth this year," and concluded that it expects private consumption to expand 1.5% this year.
FocusEconomics Consensus Forecast panelists expect private consumption to expand 1.4% this year, which is up 0.1 percentage points from last month's estimate. For 2015, panelists see private consumption growing 1.6%.
Author: Ricardo Aceves, Senior Economist