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Consumer boost bodes well for Merkel

Tuesday, August 29, 2017 - 01:30

The already buoyant mood among German consumers improved further heading into September, bolstering expectations that shoppers will continue to support growth in Europe's biggest economy. Laura Frykberg reports.

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It's a trend that's not going out of fashion. German consumers continuing to spend up large... With GFK's consumer sentiment indicator rising to 10.9 going into September... The fifth monthly increase in a row. (SOUNDBITE) (English) BGC PARTNERS MARKET STRATEGIST, MIKE INGRAM, SAYING: "Overall, the German consumer is in pretty rude health and that's been reflected in the GFK and other consumer confidence surveys for quite some time now. " Household spending has become the main carrier of Europe's largest economy, overtaking exports. Driving the shift, record-high employment, increased job security, rising real wages and low borrowing costs. It's all a bodes well for German Chancellor Angela Merkel. Who is up for re-election next month. (SOUNDBITE) (English) BGC PARTNERS MARKET STRATEGIST, MIKE INGRAM, SAYING: "The domestic economy is extremely supportive for Angela Merkel to be re-elected. I think the only real question is whether or not there's going to be sufficient support for her party to avoid a coalition with SPD and other likely candidates." Economists say the German economy will continue its consumption-led upswing in the second half of the year. The government has predicted 2017 growth of 1.9% - on a par with 2016. Which was the strongest among the G7 group of the world's most industrialised countries.

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Consumer boost bodes well for Merkel

Tuesday, August 29, 2017 - 01:30