Germans' income expectations at highest since reunification in June, GfK says

Consumer spirits in the euro area's largest economy improved further in June as German's confidence in the economy hit an almost three-year high, alongside income expectations which were at their strongest since reunification, in 1991.

GfK's consumer confidence index was at 10.4 for June and the consultancy forecast an improvement of 0.2 points to 10.6.

That was ahead of the 10.4 value for July predicted by economists.

The sub-index tracking Germans' confidence in the outlook jumped by 6.5 points to 41.3 - its highest print since July 2014.

On a related note, GfK referenced the recent decision by the IFO institute to revise up its forecast for the country's rate of GDP growth in 2017 from 1.5% to 1.8%, in part due to the global economic upturn - an increasingly recurring theme in financial markets.

That, GfK pointed out, was despite uncertainties about the new US administration and Brexit.

A sub-index for income expectations rose by less, gaining 1.7 points to 60.2.

Nonetheless, that was its highest reading in the history of Germany, reunited Germany that is.

Unsurprisingly perhaps, at nearly 2.5m the number of people registered as unemployed was also at a 26-year low, according to the Mannheim-based Federal Employment Agency.

Another sub-index measuring people's 'propensity-to-buy' increased by 2.2 points to 57.9.