German consumer confidence marks a 16-year high in August amid higher expectations of income and hopes associated with Europe’s largest economy. GFK’s leading consumer confidence index rose to 10.8 points in August from 10.6 points in July. The survey shows that the Germans have so far disregarded concerns about the Brexit talks, the US President Donald Trump’s protectionist policy and the tensions between Germany and Turkey.
The GFK index, based on a survey of 2000 users, is now at its highest level since October 2001. Analysts expected the August indicator to keep its July value.
The consumer confidence among Germans remains excellent, the institute notes.
GFK adds that income expectations have reached their highest level since Germany’s reunification in 1990. The “euphoria of income” among households is due to the excellent state of the German labor market.
Unemployment is record low – 5.5%, inflation is also low, and interest rates are at a historical minimum, which further supports consumer confidence, the Institute said.