- Title: German consumer morale brightens to reach highest since Oct. 2001: GfK
- Date: 24th May 2017
- Summary: NUREMBERG, GERMANY (MAY 23, 2017) (REUTERS) PAN OVER GFK HEADQUARTERS EXTERIOR GFK LOGO EXTERIOR OF GFK GFK RESEARCHER ROLF BUERKL WALKING THROUGH FOYER GFK LOGO BOX (SOUNDBITE) (German) GFK RESEARCHER ROLF BUERKL, SAYING: "Consumers are in an excellent mood in May. Economic expectations have also risen and have climbed to a new two-year high. Income expectations have also shown growth. Only the propensity to purchase has lost its significant growth from the previous month but is still showing very high levels. The consumer mood continues to be very pronounced." VARIOUS GRAPHS SHOWING CONSUMER SENTIMENT (SOUNDBITE) (German) GFK RESEARCHER ROLF BUERKL, SAYING: "Consumers are contributing significantly to stabilising the economy and to the economic upswing. This has also shown up in the first quarter GDP figures. It is being achieved through a broad spectrum: domestic demand, private investment and consumption, and investments but also demand from abroad. The export industry is also very strong at the moment. So we have growth across the board that can ensure that the economy continues to remain stable." VARIOUS GFK MAGAZINES (SOUNDBITE) (German) GFK RESEARCHER ROLF BUERKL, SAYING: "Consumer sentiment has so far been resilient against global economic risks, whether it is the new U.S. president or the upcoming Brexit negotiations. They certainly have an effect on the mood but consumer sentiment has so far not been impacted. I presume that it will stay that way. A big factor is the labour market. If uncertainty sets in about jobs being not safe, then it will almost certainly effect consumer sentiment." PAN FROM BUERKL'S HANDS TO FACE WIDE OF BUERKL BEING INTERVIEWED
- 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: LVA0016I76MX9
- 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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