German consumer confidence is holding steady, despite clouds on the economic horizon, according to figures for January released by the Nuremberg-based GfK market research institut.
Consumers are anticipating a modest rise in income, but expectations on the economy and consumer sentiment fell back, GfK said.
Its monthly consumer confidence index was steady at 10.4 in January, unchanged from December, which saw a fall from 10.6 in October and November.
The GfK put private consumption expenditure this year at around 1.5 per cent up compared with 2017 and predicted a further rise for 2019.
"What is remarkable is that the gap between overall economic expectations and personal financial outlook is wide," GfK analyst Rolf Buerkl said.
On one hand optimism on the economic outlook was in decline in response to trade conflict between the United States and China and looming Brexit, and on the other a strong German labour market appeared to be having a positive impact on personal expectations.
Buerkl noted that private consumption made up around 55 per cent of gross domestic product. "Consumers are making a considerable contribution to determining how things will develop," he said. The trend was being emphasized by low interest rates discouraging saving.
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