Household consumption has increased by 0.4% throughout the third and fourth quarter, according to the latest figures presented by German ifo Institute.
“The German economic outlook continues to benefit from rising consumption data among private households” comments Robert Lehmann, economic expert at the ifo Institute.
“These figures are significant for overall economic performance throughout the same period. On average, over the last 15 years, domestic consumption accounts for about 56% of economic performance” he stresses.
The growth in domestic consumption comes despite a 1.8% decline of industrial output in October, and German GDP growing at a slightly lower pace of 0.4% in the second quarter, compared to 0.7% in Q1.
Nevertheless, business confidence in Germany remains stable, with the latest October ifo business confidence index having reported a moderate increase.
Ifo data on domestic consumption are based on a combination of surveys among local retailers as well as official statistics.