German consumer confidence rebounding

BERLIN (dpa) – German consumer confidence is rebounding amid hopes the eurozone debt crisis is starting to recede and expectations of a strong labour market, survey showed Tuesday.

The GfK research group said its consumer confidence index will rise to 5.8 points in February from a revised January reading of 5.7.

It said the survey of about 2,000 households in Europe’s biggest economy reflected expectations of higher incomes and declining worries about economic fallout from the eurozone debt crisis.

“Despite the current economic slowdown, Germans continue to expect an increase in income over the coming months,” GfK said. “This optimism is predominantly based on the assumption that the employment situation in Germany will continue to see stable development this year.”

Analysts had expected the index to be slightly lower.

“While many consumers in peripheral Eurozone countries are currently eating up their savings to make ends meet, Germans are still in a shopping mood,” said ING Bank economist Carsten Brzeski.

A survey released last week showed business confidence grew more than expected for a consecutive monthly gain in January. Another report a week earlier showed investor confidence hitting a 30-month high.

“Currently there are few negative reports relating to the sovereign debt crisis,” GfK said.