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German consumer sentiment to keep rising, says GfK

Staff Writer |
German consumer sentiment is expected to maintain its positive momentum into 2017 helped by the solid economic outlook and the strong labor market, according to GfK.

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GfK market research group expects its forward-looking sentiment index to edge up to 9.9 points in January from 9.8 points in December.

GfK uses three sub-indexes that refer to the current month to derive a sentiment figure for the coming month.

The economic expectations sub-index rose to 16.4 points in December from 15.3 points in November as consumers "evidently" do not expect the results of the U.S. elections to have any direct impact on the German economy over the next few months.

Income expectations increased to 55.6 points from 44.5 points, fuelled by the "excellent condition" on the labor market.

The propensity to buy--which reflects consumers' readiness to spend on big-ticket items--fell to 48.0 points in December from 51.2 points in November but remains at "extremely high" levels.

GfK confirmed the forecast that real private consumer spending would increase by around 2% in the current year of 2016.

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