By Emese Bartha
FRANKFURT--German consumer sentiment is expected to maintain its positive momentum into 2017 helped by the solid economic outlook and the strong labor market, GfK market research group said in its monthly survey on Friday.
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. Economists in the Dow Jones Newswires survey forecast a 9.8 points reading for the coming month.
"Consumers seem to be totally immune to a series of risk factors, such as the outcome of the U.S. elections, Brexit, the flare-up in the financial crisis in Italy following the failed referendum and the resignation of Prime Minister Renzi, and the persistently high terror threat," GfK said. It appears as if consumers generally regard labor market conditions as playing the crucial role in their decision as to whether to make purchases, it added.
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.
Write to Emese Bartha at email@example.com
(END) Dow Jones Newswires
December 23, 2016 02:14 ET (07:14 GMT)
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