January 25, 2018 / 7:21 AM / 9 months ago

German consumer morale hits strongest since 2001 going into February

BERLIN (Reuters) - German consumer morale rose heading into February to its highest level since 2001, lifted by shoppers’ perceptions of a boom in Europe’s largest economy, a survey released on Thursday showed.

People walk through the Mall of Berlin shopping centre during its opening night in Berlin, September 24, 2014. REUTERS/Thomas Peter/File Photo

Household spending has become a major source of economic expansion in Germany as consumers benefit from record-high employment, increased job security, rising real wages and low borrowing costs.

The Nuremberg-based GfK institute said its consumer

sentiment indicator, based on a survey of around 2,000 Germans, rose to 11.0 points going into February from 10.8 a month earlier. The indicator was last that high in October 2001.

The Reuters consensus forecast was for a reading of 10.8.

“Consumers in Germany are making an extremely optimistic start to 2018,” said GfK researcher Rolf Buerkl. “They see the German economy as experiencing a clear economic boom.” GfK’s sub-index measuring income expectations rose to 56.8 in January from 54.3 a month earlier. The headline consumer reading always leads the component indices by a month.

Consumers’ willingness to buy rose to 60.4 from 57.1, a strong reading that indicates traditionally thrifty Germans are opening their purses more readily.

Reporting by Cirsten Pahlke and Paul Carrel

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below