Consumer optimism in Germany rose again at the beginning of 2018, with both economic and income expectations, as well as propensity to buy, on the increase in January.
According to the GfK Consumer Climate Study, consumers see the German economy as experiencing a clear economic boom.
Economic expectations have risen accordingly, climbing to a new seven-year high.
In January, the economic expectations indicator rose for the third time in succession and climbed to 54.4 points. This is a plus of 9.2 points compared to the previous month and represents the highest level since February 2011, when it stood at 57.1 points. There has been a rise of almost 33 points compared to last year.
According to consumer estimates, the German economy is currently running very soundly and at full throttle. Consumers expect this to continue through the year ahead.
Following increases in the previous month, income expectations grew again in January 2018. With an increase of 2.5 points, the second rise in a row was, however, relatively moderate. The indicator is currently at 56.8 points.
After two slight dips in succession, the propensity to buy has risen again at the start of this year. Compared to December 2017, it rose by 3.3 points. With a current total of 60.4 points, the indicator has climbed to a level it last exceeded in May 2015 when it stood at 62.6 points.
GfK is predicting a consumer climate value of 11.0 points for February 2018, up from 10.8 points in January.