-Carsten Brzeski, economist at ING
German consumer mood brightened amid increasing optimism about the economic growth and low oil prices, which freed up cash for Germans to spend. Confidence among German consumers hit the highest level since late 2001, according to the market research group GfK. Its forward-looking Consumer Sentiment Index rose from 9.3 points in February to 9.7 points in March. GfK admitted that geopolitical problems such as the Ukraine conflict and financial problems in Greece appeared to have a limited impact on German consumers. That is not a surprise given the nation's economy continue to strengthen with the unemployment rate falling to the lowest level in more than two decades in February. The Labour Office reported that the number of jobless people declined by a seasonally adjusted 20,000 to 2.812 million, the level last seen in December 1991. The jobless rate was at a record low of 6.5% for a third consecutive month in February and remains the lowest since German reunification in 1990.
Meanwhile, Spain managed to maintain its expansion rate in the fourth quarter, with the final data confirming the Euro zone's fourth biggest economy grew 0.7% on quarter in the three months through December. It was the sixth straight quarter of continuous growth in Spain. On an annual basis, Spain's GDP rose 2.0% following the 1.6% expansion in the third quarter.
© Dukascopy Bank SA