Germany: Consumer confidence stabilises in June
May 25, 2012
Despite rising uncertainty in the midst of the debt crisis, German consumers remain confident that economic growth will remain on a positive trend. The forward-looking GfK consumer confidence indicator for June remained steady at the revised 5.7 points recorded in May (previously reported: 5.6 points). The reading was virtually in line with market expectations that had the index remaining stable at the original 5.6 points observed in the previous month. While the overall consumer confidence indicator refers to June, its sub-indices (economic expectations, income expectations and buying propensity) refer to May. According to the GfK Institute, economic expectations improved markedly over the previous month, as consumers continue to perceive that the economy is showing resilience, despite the recession suffered by some of Germany's regional peers. In addition, consumers' willingness to buy improved over the previous month, as better economic prospects and low unemployment are bolstering consumption. On the other hand, income expectations did not benefit from increasing economic optimism and moderated over the previous month.
Author: Ricardo Aceves, Senior Economist