German consumers most optimistic in 6 years: GfK

Robust employment prospects and moderate inflation have propelled German consumer sentiment to a fresh six-year high, the country's largest market research institute said , indicating private consumption will be a key driver of growth in Europe's largest economy this year

The GfK's forward-looking consumer sentiment indicator rose for the seventh straight month, to 7.0 points in August from 6.8 points in July, hitting its highest level since September 2007 and beating economists' forecast of a smaller increase to 6.9 points
While GfK's overall consumer climate indicator refers to August, all sub-indicators refer to the current month
The research firm forecasts private consumption--which accounts for more than half of Germany's gross domestic product--will rise about 1% this year in inflation-adjusted terms, despite "restrained" exports and corporate investment.
German households' income expectations, meanwhile, hit their highest level in over two years in July, GfK said, noting most consumers consider it "advisable to make major purchases' in light of record low interest rates
The roughly 2,000 consumers polled by GfK each month were also modestly optimistic about the country's economic outlook, the survey showed
"Since the end of last year, the economic outlook has been on an upward trend, although there is still considerable room for improvement in the indicator value," GfK said
Economic expectations were slightly above average in July, GfK said, suggesting Germany's economic recovery will be sluggish, held back by persistent recessions in a number of euro-zone countries