FRANKFURT, May 25: Consumer confidence in Germany, which has taken a knock from high oil prices in recent months, is currently holding up in face of the eurozone debt crisis, a poll found on Friday.

Market research company GfK said its household confidence index was steady at 5.7 points for June, unchanged from May, a statement said.

“Consumer sentiment in Germany is stable going into the summer,” GfK said.

“Consumers are noticeably more optimistic with regard to the economic outlook than they were a month ago and the propensity to spend has increased moderately,” the institute said.

“Despite recessionary tendencies in Europe and rising uncertainty from the debt crisis, people see the economy growing. Elections in France and Greece have had no negative effects” on sentiment, it added.

The headline consumer confidence reading is based on responses from around 2,000 households on their expectations about pay and the economy as a whole in the comingmonths, as well as their willingness to spend money.

On Thursday, the key Ifo business climate index unexpectedly dropped sharply in May, bringing to an end a six-month rally and casting a cloud over the hitherto strong performance of Europe's biggest economy.

Newedge Strategy analyst Annalisa Piazza said the GfK reading showed that household confidence was proving “relatively resilient ... despite the recent financial market turmoil and intensifying risks of a break-up of the eurozone.”The economist said an “extremely robust” labour market was buoying consumer confidence and would be “one of the key supportive factors for the German economy in 2012.” Unicredit economist Alex-ander Koch agreed.

“The solid assessment of households remains backed by the continuing labour market upswing and higher wage agreements,” he said.—AFP

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