Consumer confidence in Germany is at its highest since late 2001, as low inflation buoys households’ income expectations, although there were signs of concern about the constant tug-of-war over Greece, a poll showed on Thursday.
“Consumer sentiment in April was mixed. While the consumer climate improved once more, the increase was not quite so marked,” market research company GfK said in a statement.
“Income expectations continued to rise, but economic expectations and consumers’ willingness to spend fell slightly,” the statement said.
“The constant to-ing and fro-ing over Greece’s future in Europe is clearly starting to have an effect on consumers.”
Looking ahead to next month, GfK’s headline household confidence index was forecast to rise to 10.1 points in May from 10.0 points in April.
“That is the highest level since October 2001. The consumer climate in Germany is continuing its uptrend, but at a more muted pace,” the statement said.
Sentiment in Europe’s top economy is on the rise, as a weaker euro and falling oil prices provide a boost to the country’s exporters.
Earlier this week, the German government raised its growth forecast both for this year and 2016.