- Title: German consumer morale brightens to reach highest since Oct. 2001: GfK
- Date: 24th May 2017
- Summary: FRANKFURT, GERMANY (FILE) (REUTERS) VARIOUS OF PEOPLE SHOPPING IN FRANKFURT COLOGNE, GERMANY (FILE) (REUTERS) VARIOUS OF PEOPLE SHOPPING IN COLOGNE
- Embargoed: 7th June 2017 10:18
- Keywords: Germany GFK consumer sentiment
- Location: NUREMBERG, FRANKFURT & COLOGNE, GERMANY
- City: NUREMBERG, FRANKFURT & COLOGNE, GERMANY
- Country: Germany
- Topics: Economic Events
- Reuters ID: LVA0026I76MX9
- Aspect Ratio: 16:9
- Story Text: German consumers were in their best mood for almost 16 years heading into June, a survey showed on Wednesday (May 24), adding to expectations that private consumption will again drive growth in Europe's largest economy this year.
The consumer sentiment indicator published by the Nuremberg-based GfK institute and based on a survey of around 2,000 Germans rose to 10.4 going into June, the highest reading since October 2001.
GfK linked the high reading to expectations the economy will continue to grow in the face of global risks like possible protectionist policies in the United States and tough Brexit negotiations between Britain and the European Union.
The bright GfK index reading comes on top of both hard data and sentiment indicators in recent weeks that have indicated the German economy is firing on all cylinders.
GfK said it expects consumption to grow 1.5 percent this year, suggesting domestic demand will again be a crucial pillar of support for the economy. Household spending has been the main driver of overall economic growth in the last two years.
With such solid foundations, risks are likely to come from abroad, the GfK said.
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