Trade Truce Brightens Mood For Vital German Consumers

German consumer confidence is picking up as February approaches, a regular poll found, suggesting a vital buttress for Europe's largest economy is holding up while industry woes persist

Frankfurt am Main, (UrduPoint / Pakistan Point News - 29th Jan, 2020 ) :German consumer confidence is picking up as February approaches, a regular poll found, suggesting a vital buttress for Europe's largest economy is holding up while industry woes persist.

Pollsters GfK's monthly forward-looking barometer climbed to 9.9 points, up 0.2 points on January's figure, the company said in a statement.

"The initial agreement in the trade conflict between the US and China has made for relief in Germany," said GfK consumer confidence expert Rolf Buerkl.

"Private consumption will remain an important support to economic momentum this year".

Looking to different elements of the survey, ordinary people's expectations for economic growth picked up, but remained in negative territory.

Meanwhile there was a rebound in people's expectations for their own income, and their readiness to spend also climbed to its highest level since January 2018.

"Continuing stable employment and real income growth are important contributors" to the spending measure, GfK said.

Unemployment remains close to historic lows in Germany.

At the same time, manufacturing firms -- which make up a much larger share of activity than in comparable European economies -- have suffered from uncertainty over trade wars and Brexit and a global economic slowdown.

But with "soft" indicators like surveys pointing to gradually returning optimism among producer firms, some economists judge the worst is over for now for the sector.