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German consumer confidence rises

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(Globalpost/GlobalPost)

German consumer confidence remains robust, apparently shrugging off -- at least for now -- fears of a possible resurgence of the euro crisis, a poll found on Tuesday.

Political gridlock in Italy and the Cyprus crisis have not substantially soured sentiment in Europe's biggest economy so far, market research company GfK said in a statement.

GfK's household confidence index was forecast to rise to 6.2 points in May from 6.0 points in April, a statement said.

"The escalation of the debt of the debt crisis in Cyprus does not appear to have had a lasting effect on consumer sentiment, which remains robust," GfK said.

Both income expectations and consumers' willingness to spend are still rising from already high levels.

"It seems that consumers do not feel their own personal economic situation is in jeopardy thanks to stable jobless numbers and pay increases," GfK said.

"On the other hand, they do not appear quite so optimistic with regard to the overall economic development, with economic expectations suffering slight setbacks," it said.

The headline consumer confidence reading is based on responses from about 2,000 households regarding their expectations about pay and the economy as a whole in the coming months, as well as their willingness to spend money.

Other recent confidence indicators -- such as the ZEW investor confidence index and the Ifo business climate index -- have stalled amid concerns that the long-running sovereign debt crisis could flare up again.

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GfK

http://www.globalpost.com/dispatch/news/afp/130430/german-consumer-confidence-rises