Following two months of decline, confidence among German consumers is picking up again according to fresh figures from German research group GfK. Wage hikes across many industries are a key driver of spending.
The mood among German consumers is improving again heading into October, a regular survey published Thursday by German pollsters GfK revealed.
The group's forward-looking barometer for October registered a consumer confidence uptick of 0.1 points to 10.6 points.
A look at the different elements of the survey showed people's view of the economic outlook and expectations for their own income in the months ahead saw strong increases.
Unemployment is at record lows since the country's reunification in 1990, boosting the public's assessment of their own financial prospects.
Big-ticket items harder to sell
Respondents were slightly less open to making major purchases, although the reading remained "at a high level," GfK noted.
"Private consumption is proving itself as an important pillar of economic developments in Germany," the group said.
"That's especially important when looking at the trade conflict between the EU and the United States."
GfK researchers expect consumer spending to grow by 1.5 percent in 2018. Wage hikes in many sectors will make sure people have more in their pockets at the end of the day despite the inflation rate going up recently.
hg/jd (AFP, dpa)