German consumer climate predicted to increase considerably in July

The German consumer climate is to rise considerably with the predicted overall indicator at 10.1 points for July, following a value of 9.8 points in June, market research group GfK reported Wednesday.

According to GfK, income expectations of German consumers in June reached a record high with 59.6 points since reunification in 1990.

Meanwhile, consumers' economic outlook also improved notably, a third increase in a row. Only consumers' willingness to buy fell slightly, but remained at a strong level, the Nuremberg-based group said.

"Consumer climate is therefore showing a continued upward trend, underpinning consumption's position as an important pillar of Germany's economic development," said Rolf Buerkl, an analyst for GfK.

Buerkl commented that the good consumer climate is predominantly thanks to excellent domestic conditions, such as high levels of employment, excellent income development and virtually nonexistent inflation.

The report also warned that risks brought by Brexit and crises related to refugees and in Middle East would damage consumer climate if they should escalate.

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