BERLIN – A survey has found that low unemployment and solid wage increases have helped push German consumer confidence to a nearly six-year high.
The GfK research institute said Wednesday that its forward-looking consumer climate index rose to 6.8 points for July from 6.5 in June. That’s the highest level since a reading of 7.3 in September 2007.
Germany’s unemployment rate was 6.8 per cent in May, a contrast with rates above 20 per cent in the European countries worst-hit by the debt crisis. Industrial workers and others in the country, which has Europe’s biggest economy, have secured wage raises well above the inflation rate this year.
Earlier this week, a closely watched survey showed a slight increase in business confidence, underlining expectations of stronger economic growth in Germany.