German consumer sentiment steady, says GfK

Market research group GfK’s forward-looking German consumer sentiment indicator was flat in February compared with the previous month at 9.4, a touch ahead of economists’ expectations for a nudge down to 9.3.

“Despite a number of risks, including the threat of terrorist attacks and the refugee crisis, consumers still believe that the German economy will continue to grow modestly in the next few months," GfK said.

“Above all, this improving optimism can be attributed to the extremely strong labor market and rising employment.”

Pantheon Macroeconomics said: “A surprising increase, likely lifted by lower energy prices offsetting any hit from financial market volatility. Net rent inflation has also fallen recently—boosting disposable income—which probably also helped.”

The indicator for economic expectations rose 1.3 points to 4.2 in January, when it ended its six-month decline.

Meanwhile, the sub-index gauging consumers’ willingness to buy large-ticket items, rose to 52.7 points in January from 49 in December, and the income expectations index slipped to 47.2 in January from 50.8.