Germany: Consumer confidence rises to one-year high
February 28, 2012
Consumer confidence remains healthy among German consumers as a result of positive developments in the labour market and better income prospects. The forward-looking GfK consumer confidence indicator for March inched up to 6.0 points from the 5.9 points observed in February and was in line with market expectations. The monthly reading represents the highest level since April 2011. Along with the overall consumer confidence indicator for March, the Institute also published three sub-indicators (economic expectations, income expectations and propensity to buy), which refer to February. According to the GfK, economic expectations and willingness to buy dropped slightly over the previous month, whereas income expectations improved markedly. The improvement in income expectations reflected consumers' positive assessment regarding favourable developments in the labour market, which have boosted prospects for higher wages. The improvement in consumer sentiment bodes well for private consumption going forward.
Author: Ricardo Aceves, Senior Economist