German Consumer Confidence At 5-Year High

German Consumer Confidence At 5-Year High

Amid lingering instability in the euro area, the Germans are seemingly less pessimistic over the euro area’s stability as consumer confidence in the euro area’s paymaster unexpectedly hit a five-year high in November.

According to the market research company, Gfk AG in Nuremberg said that German consumer confidence in November jumped to 6.3 from a revised gain in October of 6.1, the highest since October 2007.

German consumer confidence was supported by rising wages amid easing price pressures and the drop in joblessness to a two-decade low which offset fears over the outlook for the euro area.

The Gfk survey is based on approximately 2,000 responses gathered during the first half of the month and that data is seasonally adjusted.

The outlook for the Germany economy remains subject to downside risks amid lingering tension in the euro area and worsening global outlook. Pickup in business activity was seen in the third quarter, but the Bundesbank already warned that the economy might stagnate again into the fourth quarter of the year, reflecting the instable pace of recovery in Germany.