German Consumer Confidence Remains Buoyant

German Consumer Confidence Remains Buoyant

Thursday 20th February 2020  – 07:18 (GMT)

The GfK consumer sentiment indicator for Germany was in line with market expectations for March 2020 and held steady at 9.8. This was the second month in a row for a positive reading out of the EU’s largest economy but has given little respite for the vulnerable euro.

German income expectations also rose for the second time this year as fears of job cuts within the car industry and its associated suppliers began to subside. The recent global outbreak of the deadly coronavirus did little to dampen consumers willingness to spend and market attentions will now turn to EU consumer confidence announced later this afternoon.

Elsewhere, German inflation figures beat expectations with the producer price index (PPI) for January coming in at 0.8% vs. a 0.2% consensus and up from the previous reading of just 0.1%.

The euro remained flat following the news and with little stabilisation on the horizon, 2020 could prove another turbulent year for the second most traded currency globally.