german consumer confidence starts 2014 on a strong note - Gfk

Wednesday 29 January 2014 10.27
GfK's household confidence index was forecast to rise to 8.2 points in February from 7.7 points in January
GfK's household confidence index was forecast to rise to 8.2 points in February from 7.7 points in January

Consumer confidence in Germany rose again at the start of the new year, auguring well for Europe's top economy as it goes into 2014, a new poll revealed today.

"German consumer sentiment has started the new year 2014 full of zest," market research company GfK said in a statement.

"Expectations with regard to both the economy and to income, as well as the willingness to spend, are rising sharply," it added.

Overall, GfK's headline household confidence index was forecast to rise to 8.2 points in February from a revised 7.7 points in January. 

"Consumers believe the economy is on the up, as indicated by the fifth consecutive monthly increase in economic expectations," GfK said.

"Income expectations have also risen as a result to the highest level in 13 years. And the propensity to spend has topped the seven-high year recorded last month."

This reading is based on responses from about 2,000 households regarding their expectations about pay and the economy as a whole in the coming months, as well as their willingness to spend money.

Sentiment in Europe's top economy is currently very positive. Last week, the ZEW investor confidence index remained close to its highest level in over seven years and the Ifo business climate index climbed to its highest level in nearly three years.