No end in sight to German consumers' good vibes

The mood among consumers in Germany should continue to brighten in August, pollsters GfK said Thursday, maintaining an important pillar of growth in Europe's largest economy.
GfK's forward-looking poll of around 2,000 people predicted an increase of 0.2 points in its consumer confidence index for next month to reach 10.8 points.
"The public thinks that the domestic economy could even step up a gear as the year goes on," the pollsters commented in a statement.
Low levels of unemployment, easy-money policy from the European Central Bank and cheap oil are all contributing to the feel-good factor, GfK suggested.
Meanwhile, months after Donald Trump's inauguration and the beginning of Brexit talks, fears that trade with the United States or Britain would suffer have yet to be realised -- although consumer sentiment might be seriously harmed if they were, the pollsters said.
Looking in more detail at the result, people's view of the economic situation and their expectations for their own income both became more positive compared with the July forecast.
Although consumers' readiness to commit to large purchases fell back slightly in the August survey, it remains at an "overall very good level" compared with past results, GfK pointed out.
Most households can plan securely for the future thanks to a low risk that wage earners would lose their jobs, the pollsters noted.
People's inclination to spend cash was also boosted by falling interest in saving, as rates remain very low.
Over the full year, GfK expects domestic consumption in Germany to increase by around 1.5 percent compared with 2016's level.
© 2017 AFP
No end in sight to German consumers' good vibes No end in sight to German consumers' good vibes Reviewed by Alexander Von Stern on 00:24:00 Rating: 5