German consumer confidence is set to continue improving in August, reflecting Germans' positive view of the economy and of their own finances, market researcher GfK's monthly survey showed on Thursday.
GfK's said its forward-looking consumer sentiment index is set to rise to 10.8 points in August from 10.6 points in July. Economists in The Wall Street Journal's survey expected a 10.6 point reading.
Continue Reading Below
"Consumers are expecting that the domestic economy can even pick up a notch over the course of the remaining year," GfK said.
GfK uses three sub-indexes for the current month to derive a sentiment figure for the next months.
The economic expectations sub-index rose to 44.6 points in July from 41.3 points in June, representing the fifth advance in row, hitting the highest level since July 2014, GfK said.
Germans' optimism is fanned by the strength of the labor market, the expansive monetary policy of the European Central Bank, and by modest oil prices, GfK said.
The income expectations sub-index increased to 60.9 points from 60.2 points, GfK said.
Consumers' propensity to buy, which shows their willingness to spend on big-ticket items, decreased to 54.8 points in July from 57.9 points in June, GfK said.
Despite the positive signals for consumption in Germany, GfK flags some potential risks ahead, such as the recently started Brexit talks, the unclear trade policy of the U.S. government and the worsening relationship between Germany and Turkey. These issues, however, have not yet had a measurable impact on consumer mood in Germany.
Write to Emese Bartha at email@example.com
(END) Dow Jones Newswires
July 27, 2017 02:14 ET (06:14 GMT)