Germany's stable labour market helped consumer morale hold at its highest level in 2.5 years going into November, despite posting a reading that fell short of expectations, data showed today.
The forward-looking GfK consumer sentiment indicator, based on a survey of 2,000 Germans, held steady at 4.9, unchanged from October, the Nuremberg-based GfK market research group said.
The indicator, also buoyed by expectations for further economic recovery, was at its highest since May 2008 but stood below a Reuters poll forecast for 5.1.
The consumer sentiment survey comes days after economy minister Rainer Bruederle said domestic demand would make up three quarters of growth next year in the traditionally export-led economy.
Data on Europe's biggest economy over the past week has been bullish, signalling its stronger-than-expected recovery could hold up.
Business sentiment hit its highest level in 3.5 years in October and firms' expectations also improved, a survey showed last week.
However, a GfK gauge measuring income expectations in October fell to 36 from 45.2 in the previous month on expectations of rising energy prices.
Economists acknowledged some risks but noted that conditions for a pick-up in consumption are near their best in 10 years.
Consumers' willingness to buy also fell to 22.5 in October from 30.7 a month prior -- still above the long-term average of nil but weighed down by lower income expectations, the GfK said.