German economy boosts consumer confidence: GfK

Better than expected economic growth has boosted consumer sentiment in Germany, and the GfK research institute reported Thursday significant increases in expectations for the economy in general and personal income in particular.

A woman walks past a shop window displaying a Sale sign at a shopping mall in Berlin.

GfK's overall indicator edged up to 4.1 points in its latest reading from 4.0 a month earlier, a figure that was itself revised higher.

"The extremely good news on the economic development and continued positive reports on the labour market have led to robust consumer sentiment in August," a statement said.

"Consumer sentiment in August is strongly influenced by the substantial rise in German gross domestic product in the second quarter of this year," it added.

The German economy, Europe's biggest, posted record growth of 2.2 percent in the second quarter of 2010 from the previous three-month period, and the central bank has forecast a full-year expansion of around 3.0 percent.

source AFP

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