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Easing inflation worries improve German consumer confidence
GERMAN consumer confidence rose to its highest level in more than a year as easing inflation encouraged shoppers, according to data from research group GfK yesterday.
The GfK consumer sentiment indicator, rose to 3.5 going into August from an upwardly revised reading of 3.0 for July.
“Inflation is fading and people have more money in their pockets,” GfK said.
Indeed, June figures for the downward trend in broad money supply (M3) and private-sector credit growth in the eurozone suggest inflation will undershoot the European Central Bank’s (ECB) target for the next two years.
M3 growth in the 16-country bloc fell to 3.5 per cent, the lowest rate since the start of the euro in 1999.