German consumer confidence touched near 12-month high, beating market estimates, data from a corporate survey showed Wednesday. This indicated that private consumption will continue to drive growth in Europe's biggest economy.
The GfK consumer sentiment indicator, based on a survey of some 2,000 Germans, rose to 10.1 going into July, from 9.8 a month earlier, beating a Reuters consensus forecast of economists for the headline figure to remain unchanged. The last time it was at this level was in August, after it hit 10.2 in June 2015.
GfK said the survey, which was conducted between May 27 and June 10, also found that expectations for the economy rose for the third consecutive month, to 18.0 from 8.3 the previous month, Reuters reported.
“Consumers clearly see a bright future for the German economy, their spirits are as of yet undampened by discussions surrounding the possible impact on the German economy of the UK leaving the EU,” said Rolf Buerkl, Researcher, GfK.
Further, consumers remained upbeat about their earnings for the next year, with the index for income expectations rising almost eight points to 59.6, the highest level on record. The willingness to buy deteriorated slightly to 54.4, having reached its highest level in a year the previous month. According to GfK, a one-point change in the indicator corresponds to a year-on-year change of 0.1 percent in private consumption.
Meanwhile, the German economy grew by 1.7 percent in 2015, strongest in four years driven by soaring private consumption and higher state spending on refugees. It is expected to grow by around the same amount this year, Reuters reported.
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