German consumer confidence rose to its highest level in nearly six years heading into August, shoring up expectations that household spending will help Europe's largest economy withstand weak demand for its exports.
GfK market research group said on Tuesday its forward-looking consumer sentiment indicator, based on a survey of around 2,000 people, climbed to 7.0 going into August, its highest level since before the global financial crisis in September 2007, from 6.8 the previous month.
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That was above the mid-range forecast in a Reuters poll for a reading of 6.9 and will bolster government hopes that German household spending will offset weaker export markets elsewhere in the euro zone and in China.
"As summer finally arrived in Germany, it was not just the temperature but also the mood of consumers that was rising this month," GfK said in a statement.
"The continued stability of employment prospects and a moderate rate of inflation caused optimism to rise once more."