Germans euphoric about their income prospects in August, GfK says

Germans' were euphoric about the prospects for their own incomes in August, whetting their appetite for more consumption, the results of a widely-followed survey revealed.

GfK's consumer confidence index for Germany printed at 10.0 points in August and the market research group forecast a further improvement to 10.2 in September, ahead of the 10.0 expected by economists.

"While consumers are rather reserved about overall economic development in the future, they are downright euphoric about their own financial situations. And this attitude is completely justified. An excellent and stable employment situation, considerable pay rises for employees and retirees as well as a virtual lack of inflation will ensure a distinctly optimistic attitude that also continues into the coming months," GfK said in a statement.

A sub-index measuring how Germans see prospects for the wider economy slipped by 0.8 points to 8.6. It remained above its long-term average value of 0 but 8 points lower from the same period last year.

Worsening expectations for the economy were linked to the three attacks in Bavaria in July 2016.

GfK forecast real private consumer spending in Germany would rise by around 2% in 2016 and continue to be an important pillar of growth.