Strong growth has made German consumers more optimistic about the economy, a regular poll showed Wednesday, but the public remain cautious about their own finances.
A monthly survey of around 2,000 people by pollsters GfK forecast a 0.1-point fall in its consumer confidence barometer for September, to 10.5 points.
Looking to different elements of the survey, consumers ‘see the economy on a solid growth path’ after official data showed quarter-on-quarter expansion of 0.5 percent between April and June, GfK said.
That contributed to a lift in consumers’ economic expectations, although the measure remains well short of levels seen around this time last year.
Meanwhile, people’s expectations for their own income and inclination to make large purchases both fell.
‘Higher energy prices that have driven inflation up to two percent may be drowning out the excellent conditions in the labour market and solid wage increases,’ GfK suggested.
Nevertheless, with unemployment at historic lows ‘fear of job loss among workers remains small,’ meaning they remain relatively open to forking out large sums.
Overall, the pollsters expect consumption spending to continue rising this year, but warn higher inflation could damp growth further in the future.