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GfK: German consumers still optimistic on economic growth in December

German consumers still believe that the economy is continuing to grow but their income expectations and the propensity to buy have slightly declined, results from the November consumer climate study by research company GfK showed.

GfK projects that the consumer climate indicator for December will stand at 10.7, unchanged from the October survey which was completed right after the general elections.

After clear growth in October, the indicator for economic outlook rose by 0.8 point in November to 44.3. Companies and economic experts share consumers' optimistic view that the economy will see a robust growth of 2% in 2017 as evidenced by positive economic data.

Income expectations fell for the third successive month but the indicator remains at a high level of 47.9 points. GfK says that the distinct optimism regarding income is attributed to the excellent condition of the German labor market. Employment is on a steady rise and wages are expected to rise considerably.

The indicator for consumers' propensity to buy also shed 0.7 point but is still currently at a very high level of 58.5 points. The survey showed that the high level of job security coupled with good income growth led to consumers being happy to spend.

The report does not take into account the failed talks over a potential governing coalition, which may affect consumer sentiment.