German consumer confidence is set to remain unchanged at the end of the year after two consecutive declines, on strong economic expectations, though it is yet to be known whether the failed coalitions talks would hurt the sentiment, results of the latest survey by GfK showed Tuesday.
The forward-looking consumer confidence indicator showed a reading of 10.7 for December, unchanged from November. The score was in line with economists’ expectations.
“This is good news, particularly given the upcoming Christmas trade,” the market research firm said.
The economic expectations index rose to 44.3 in November from 43.5 in October. The income expectations measure eased to 47.9 from 48.7. The propensity to buy index also fell in November, to 58.5 from 59.2.
The GfK has predicted at least 1.5 percent growth in private consumption this year versus the official growth figure of 2 percent for 2016.
The failed exploratory talks, led by Chancellor Angela Merkel, about forming a so-called Jamaica coalition have not been taken into consideration in this data, because the survey had already been completed at that time, the GfK said.
The firm also said that there was a continued threat of further risks to the German consumer climate from abroad from events such as faltering Brexit talks, North Korea tensions and possible protectionist tendencies in the U.S. trade policy.
The material has been provided by InstaForex Company – www.instaforex.com
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