Daily Times

German consumers are expected to remain cheerful through July, pollsters GfK said on Thursday, as the public falls in step with general optimism about Europe’s largest economy.

GfK’s forward-looking poll of around 2,000 consumers forecast an increase of 0.2 points to reach 10.6 in July, continuing an upward trend observed over the past two months.

“Germans see the domestic economy in excellent shape into the beginning of the summer,” the firm commented in a statement.

“Even uncertainty about possible restrictions on trade by the US government or the start of Brexit negotiations can’t cloud the picture for now,” they went on — although both could be troubling prospects for citizens of Europe’s export powerhouse.

June saw an upturn in all the indexes feeding into GfK’s indicator, with consumers expecting a stronger economy and higher incomes as well as being more prepared to spend money.

Low interest rates have contributed to people’s inclination to spend over saving, the survey found, while a stronger labour market has boosted confidence.

“Low levels of fear for their own jobs means consumers can plan more securely. That makes them ready to take on bigger purchases with higher financial risks,” the pollsters said.

Consumers’ positive mood matches that of businesspeople, after the monthly Ifo survey of entrepreneurs mounted to its highest level since 1991 in June.