Germany: Consumer confidence stable at seven-year high in April
March 26, 2014
The forward-looking consumer confidence indicator published by the GfK was unchanged at March's 8.5 points in April, which was on par with market expectations. The result represents the highest level 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 March. According to the GfK, consumers' economic expectations and their willingness to buy big-ticket items improved over February, reflecting households' assessment that strong economic growth is firmly entrenched. Conversely, consumers' income expectations fell slightly compared to the previous month. The GfK concluded that the stabilization in April suggests that, “the consumer climate is taking a breather.” 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