One day after Germany's business confidence index rose for the third straight month, a new report says the optimism has spread to consumers as well. The rise is largely due to Germany's strong economic performance.
Germans are optimistic about the economy and income
Germany's surprisingly good economic performance has made consumers more optimistic about the economy and their personal income, according to a report released on Thursday.
The Nuremburg-based market research institute GfK bases its monthly forward-looking consumer sentiment index on a survey of about 2,000 German households. The overall index for September was 4.1 points - the highest in 14 months. That figure is up from a revised August index of 4 points.
"The extremely good news on the economic development and continued positive reports on the labour market have led to robust consumer sentiment in August," the GfK report said. "There are currently good indications that consumer sentiment in Germany is experiencing a sustained upward trend."
The increase was largely due to Germany's higher-than-expected growth in gross domestic product during the second quarter, the GfK said. The 2.2-percent jump in output was the largest quarterly increase since German reunification in 1990.
Germany's central bank expects an overall growth of three percent by the end of 2010.
Author: Andrew Bowen (AFP/dpa)
Editor: Chuck Penfold