German consumer confidence soars to 13-year high

German consumer sentiment surged to its highest level in more than 13 years heading into February, a survey showed yesterday, as lower oil prices meant shoppers in Europe’s largest economy had more spare cash.

GfK market research group said its consumer sentiment indicator, based on a survey of 2,000 Germans, rose to 9.3 from 9.0 in January. That was the highest reading since November 2001.

“German consumers have evidently also been affected by the major collapse in energy prices over the past few weeks,” said GfK analyst Rolf Buerkl.

“Reduced costs of fuel and heating oil are boosting disposable income, giving consumers greater freedom for other spending or purchases,” he added.

The survey showed German consumers consider the economy to be picking up and see this continuing in the coming months.

Consumers were also more willing to make purchases than at any time since December 2006 as they spend less on fuel and heating oil and have little inclination to save due to the paltry rates being offered by banks.

Germans were more optimistic about their future income thanks to the stable labour market and the low inflation rate, according to the survey.

Reuters