Germany’s Gfk consumer sentiment index which measures consumer morale rose for a fifth straight month to a ten-month high, indicating a consistent upbeat mood by consumers in Europe’s largest economy .
The Gfk index beat expectations to climb to 5.9 versus a forecast of 5.6. This was higher than the previous reading of 5.7.
The consumer sentiment survey is based on a survey of 2,000 Germans and asks respondents to rate the relative level of past and future economic conditions, including personal financial situation, climate for major purchases, and overall economic situation.
Financial confidence is a leading indicator of consumer spending, which accounts for a majority of overall economic activity.
“Private consumption can do what it’s supposed to — provide an important support for the economy this year,” the GfK market research institute said in a statement accompanying survey data.
“It is above all important that trust lost during the crisis is restored,” it added. “Decisive and lasting action by policymakers would be a key way to win back trust.”