Germany: Consumer confidence remains strong despite debt crisis
December 20, 2011
Confidence among German consumers remains strong despite the protracted European debt crisis. The forward-looking GfK consumer sentiment index for January came in at 5.6 points, which mirrored the unrevised value recorded for December. The reading beat market expectations that had the index softening a notch to 5.5 points. Along with the overall consumer confidence indicator for January, the GfK Institute also published detailed data referring to December. Economic expectations improved for the first time after declining uninterruptedly since July. The Institute commented that ?consumers are evidently more perceptive at present than they have been in previous months to the economic framework conditions, which are still extremely favourable.? Meanwhile, income expectations also improved from last month and although willingness to buy recorded a significant drop, it remained ?still at a comparatively high level.?
Author: Ricardo Aceves, Senior Economist