German consumer sentiment rises again thanks to "excellent" labor market: study

BERLIN, March 28 (Xinhua) -- Germany's economic momentum is propelling consumer sentiment to record heights, a regular study published on Wednesday by the GfK market research institute finds.

The Nuremberg-based institute's consumer sentiment barometer rose by 0.1 points to 10.9 points in April. The closely-watched findings were based on a representative monthly survey among 2,000 consumers.

"The growth engine is running hot at the moment. Consumers expect this to hold true for the coming months as well," a statement by GfK expert Rolf Buerkl read.

Consumers assessment of the prospects for the economy in general, as well as for their individual incomes once again improved in April. As a consequence, the GfK barometer measuring respondents' propensity to commit to larger purchases, such as cars and furniture already rose to 59.1 points after 56.3 points in February.

The market research institute pointed to the "excellent situation of the labor market" in particular as underpinning greater optimism among German consumers. Strong demand for labor was reflected in rising wages and a positive outlook for future employment and unemployment figures.

According to a recent study published by the Institute for Employment Research (IAB), the research institute of the Federal Employment Agency, employment prospects in Germany could hardly be any better. "2018 will most likely be a record year for the German labor market," a statement by IAB expert Enzo Weber read.

Nevertheless, GFK noted on Wednesday that domestic consumers' spending mood could still be dampened by exogenous shocks. "Should the protectionist tendencies in the U.S. lead to a trade war, Germany would be disproportionately affected as an exporting nation and this would in turn also influence consumer sentiment," the monthly study warned. Enditem