-GFK
German consumer climate reached a new high of 9.3 points, a level unseen for 13 years. The consumer climate improved, with economic, income and willingness to buy rising. Slumping energy prices over the last few weeks had a significant impact on German consumers. Due to lower energy prices disposable income gained ground, giving consumers freedom to spend their capital elsewhere. Another reason for higher consumer confidence is a new uptrend movement in the country's economy, with GDP and overall economic growth rising. The economy is expected to keep rebounding in the upcoming months, given continuously falling energy prices and cheapening Euro, thus boosting exports and companies' willingness to invest. At the same time the income expectation also edged up in Germany this month, overshadowing the slight drop back in December. The reason for the increase was a sharp inflation fall along with stable employment. In the meantime the willingness to buy rose for the fourth consecutive time, adding 8.3 points, while the propensity to consume reached an eight-year high. According to the Federal Statistical Office, the outlook for the consumer economy is sumptuous and that Germany's domestic economy will play a crucial role in the global economic development. Meanwhile, Germany's import price index declined more than anticipated on Wednesday, official data showed. The import price index slumped to -1.7% from -0.8% in the preceding quarter, beating expectations of -1.5%.
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