1st LD Writethru: German consumer climate continues to upswing but slightly

The German consumer climate is increasing slightly and its overall indicator has forecast 10.2 points for June, following a value of 10.1 points in May, market research group GfK reported on Wednesday.

According to GfK, economic expectations and willingness to buy increased somewhat, while income expectations declined moderately.

"Very robust domestic demand in Germany and low inflation rates have caused economic expectations and willingness to buy to further improve again," said Rolf Buerkl, an analyst for the Nuremberg-based research group.

The economic expectations of consumers have recovered again, while continuing good employment, good income growth and low inflation provide sustained support for the willingness to buy, the report noted.

However, income expectations had to accept a slight loss after hitting its highest level since reunification in 1990 last month.

"Tough negotiations on the future of Greece in the euro area, the Ukraine crisis, and IS terrorism could noticeably dampen consumption in Germany," Buerkl warned.

The GfK consumer climate survey has been conducted since 1980. Its findings are based on around 2,000 consumer interviews conducted each month on behalf of the European Commission, the executive body of the European Union. Endit