Germany: Consumer confidence stable at seven-year high in May
April 29, 2014
In May, the forward-looking consumer confidence indicator published by the GfK was unchanged at the 8.5 points recorded in both March and April. The reading was in line with market expectations and represents the highest print since January 2007.
In addition to the overall consumer confidence indicator, which projects sentiment for the coming month, the GfK presents three sub-indicators that refer to April. According to the GfK, consumers' income expectations improved over the previous month. Conversely, their economic expectations and willingness to buy big-ticket items fell compared to March. The GfK concluded that the May's stabilization suggests that, “the consumer climate is at a good level.”
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: Ricardo Aceves, Senior Economist