German consumer confidence rises to 16-month high
- Source: Xinhua
- [23:41 September 25 2009]
- Comments
German consumer confidence for October has risen to a 16-month high as both economy and income expectations increased, according to a key survey released Friday.
GfK AG's sentiment index for October, based on around 2,000 consumer interviews, rose to 4.3 from a revised 3.8 in September, the Nuremberg-based market-research company said in a statement.
That's the highest index reading since June 2008.
Over the past few weeks there have been a growing number of reports claiming that the economic decline is less severe than was feared several months ago, GfK AG said.
"The calm price climate and lack of inflation is ensuring that purchasing power is strengthening," GfK AG said. The fact that the feared slump on the labor market has so far not materialized is also supporting the positive mood.
But those positive signs for the German economy aside, the labor market was still the most uncertain factor that may change the entire German economic trend, AfK AG said.
GfK AG said that the major power for the current recovery of the German economy comes from consumption, which is directly linked to additional development of the labor market.
"Should the number of unemployed people rise sharply in the coming months, this will adversely affect consumers and weaken the consumer climate," GfK AG said.
