German consumer sentiment is set to jump to its highest for nearly five years in June, the GfK market research group predicted today.
The forward-looking GfK consumer sentiment indicator, based on a survey of around 2,000 Germans, rose to 6.8 in June - the highest reading since late 2001 - from an upwardly revised 5.8 in May, the Nuremberg-based group said.
"With the end of the long winter, the mood among consumers has significantly brightened, and it looks as if the trough of recent years has now been left behind," GfK analyst Rolf Buerkl said.
"Optimism that the German economy will develop positively has increased considerably, while personal income expectations have also improved, albeit more modestly."
Consumer spending has been the weak link in an economic recovery in Europe's biggest economy, dragged down by high unemployment and stagnating disposable income.
However, official GDP data released last week showed private consumption helped drive growth of 0.4 per cent in the first quarter, suggesting an export-powered upswing may be broadening.