German Consumer Confidence Rises to Six Year High

German consumer confidence rose to its highest level in nearly six years heading into August, shoring up expectations that household spending will help Europe’s largest economy withstand weak demand for its exports.

GfK market research group said on Tuesday its forward-looking consumer sentiment indicator, based on a survey of around 2,000 people, climbed to 7.0 going into August, its highest level since before the global financial crisis in September 2007, from 6.8 the previous month.

That was above the mid-range forecast in a Reuters poll for a reading of 6.9 and will bolster government hopes that German household spending will offset weaker export markets elsewhere in the euro zone and in China.

“As summer finally arrived in Germany, it was not just the temperature but also the mood of consumers that was rising this month,” GfK said in a statement.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza