German consumers' mood unclouded by political uncertainty

Confidence among consumers in Germany swelled in January, a monthly survey showed Thursday, with expectations for the future untroubled by political uncertainty in Europe and across the Atlantic.
Market research firm GfK's forward-looking index edged up to 9.9 points in January, from 9.8 the month before.
But sub-indexes covering feelings about the future economic situation, income expectations and readiness to spend money all jumped, the survey of around 2,000 people showed, and the company predicted a level of 10.2 points for February.
"Consumers' mood made a sparkling start to the year," the pollsters commented, continuing an upwards trend visible since the autumn.
Germans' expectations for the economy reached their highest level since June 2015, hitting 21.6 points after a 16.4-point reading in December.
The public was "countering the headwinds unleashed by uncertainty over the future course of the new US President and Brexit," GfK said.
Growing wages, the lowest level of unemployment since German reunification in 1990 and low interest rates all favour a sunny outlook among consumers.
GfK's results "suggest that this year too private consumption will remain the main pillar of the economic upturn in Germany," analyst Stefan Kipar of BayernLB bank commented.
"That will make the economy more resilient against the disruption coming from outside."
Positive hopes for the months ahead put the public at odds with business, which saw confidence eroded to its lowest level since September in a monthly Ifo institute survey released earlier this week.
With the US Germany's largest export customer, businesses are concerned about the impact newly-installed President Donald Trump's policies could have on trade.
At home, consumers may have more to fear from European problems in the short term, GfK suggested.
"Growing inflation" could trouble the mood of the man on the street alongside upcoming elections in France, Germany, the Netherlands, and possibly Italy, as well as the imminent start of Brexit talks between London and Brussels.