German consumer confidence is set to remain unchanged at a 7-year high in June, survey data from market research group GfK showed Monday.
The forward-looking consumer confidence index revealed a reading of 8.5 points for June, unchanged from May. The score matched economists' expectations and was the strongest since January 2007.
The consumer climate is maintaining its very stable development and has now been unchanged for four months, GfK said.
Among three components of the consumer sentiment index, economic expectations and willingness to buy gained upward strength, while income expectations lost a large share of the increase achieved in the previous month.
The economic expectations index climbed 6.4 points to 38.5 in May. A higher value was last recorded in July 2011, when it climbed to 44.6 points.
Despite ongoing political and economic unrest in Ukraine, reports of continued increase in German employment and fall in registered unemployed below three million strengthened optimism on economic development.
Meanwhile, the income expectations measure fell 4.5 points to 47.8 in May. Nonetheless, the indicator remains at a very high level and is still almost 14 points above the corresponding previous year's value.
Germans appear to be taking an exceedingly optimistic view of the developments they can expect in their personal finances. The stable labor market provides greater scope for salary and wage increases. Inflation also looks set to remain moderate in months ahead.
The third component of consumer confidence, willingness to buy gained 0.9 points to 49.5 in May. Consequently, the desire to consume has consolidated its already high level, it said.
In the first quarter, Germany's economic growth rebounded solely driven by domestic demand. The quarterly growth doubled to 0.8 percent from 0.4 percent in the fourth quarter. However, growth is expected to slow in the second quarter.
The European Commission projects the biggest euro area economy to grow 1.8 percent this year and 2 percent in 2015.
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September 11, 2026 16:26 ET Consumer prices data was the main news on the economic front in the U.S. this week. In Europe, the latest interest rate decision from the European Central Bank was the focus along with the revised second quarter economic growth data for the euro area. In Asia, the monthly foreign trade data from China drew attention.