GfK survey shows consumers upbeat about the outlook for German economy

German GfK survey data released earlier today showed Germans' income expectations remained high overall, but consumers felt more downbeat about their earnings for the next 12 months. GfK market research groups' data showed that consumer sentiment was unchanged at 9.4 heading into February, but came in above Reuters consensus forecast for a reading of 9.3.

Shoppers felt more upbeat about the outlook for Europe's largest economy and more inclined to splash out, thanks to rising wages and low inflation, but were less optimistic about their future income. Annual harmonised German inflation eased to 0.2 percent in December and the rate for the whole of 2015 was 0.1 percent, its lowest level on record.

"Despite a number of risks, including the threat of terrorist attacks and the refugee crisis, consumers still believe that the German economy will continue to grow modestly in the next few months," GfK analyst Rolf Buerkl said.

Preliminary data showed the German economy grew by 1.7 percent in 2015, its strongest rate in four years, fuelled by private consumption and a record influx of more than a million migrants last year, which pushed state spending higher. Expectations are for the economy to maintain same growth rate this year.