BERLIN, June 25 (Xinhua) -- German consumers were "very confident" about the economic development as the corresponding forward-looking indicator increased by 17.3 points to 58.4 points in July, according to a monthly study published by the market research institute GfK on Friday.
After a sharp increase in the previous month, economic expectations reached the highest level in more than ten years, according to the study based on monthly interviews of around 2,000 German consumers.
Income expectations in Germany increased similarly and reached pre-pandemic levels again. According to GfK, overall consumer sentiment recovered by 6.6 points compared to the previous month as the index climbed to minus 0.3 points in July.
Declining COVID-19 incidence rates, progress in vaccination, easing of restrictions as well as the possibility to travel again would lead to "increased optimism, which is also reflected in improved consumer confidence," said Rolf Buerkl, GfK consumer expert, in a statement.
The development would make a "noticeable recovery in private consumption in the second half of 2021 more likely," GfK noted. The domestic economy would thus "once again positively contribute to overall economic development."
Germany's economy had so far been supported mainly by the positive development of German exports, particularly in trade with China and the United States, according to GfK. Enditem