German shoppers put exports in shade to keep economy going

German consumers appear to be girding themselves to spend, spend, spend according to the latest confidence index from GfK.

Its indicator, based on a survey of 2000 Germans, edged up in May and is at its highest level since October 2001. The uptick also confounded the consensus forecast.

The pollster underlined the persistent very robust domestic demand in Germany and the low rate of inflation as key factors.

Record low unemployment is also ensuring people have some money to spend, most welcome as the export stall has robbed Germany of a vital economic engine.