"Germans are once again focusing on the generally pleasing domestic state of affairs"
- Market research group GfK
German consumers feel more confident about the Europe's largest economy's outlook, due to a stable labour market and higher income expectations, market research group GfK said on Tuesday. The forward-looking consumer sentiment indicator improved for the first time in four months and rose to 5.8 in February from a revised 5.7 in January, meeting analysts' expectations. Despite the fact, the German government lowered their growth forecast, the Bundesbank said last week that the economy is already rebounding from a contraction in the final quarter of 2012. A better-than-expected reading of business and investor confidence, as well as the fact that a gauge of activity in service industries climbed to a 19-month high, both are signalling that the economy is gaining momentum.
"Germans are once again focusing on the generally pleasing domestic state of affairs," GfK said in an e-mailed statement. "The labor market is stable and inflation is moderate. Consequently, both income expectations and willingness to buy have risen quite considerably."
"Despite the current economic slowdown, Germans continue to expect an increase in income over the coming months," GfK added.
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