German consumer confidence unexpectedly rises in August

German consumers have shrugged off the uncertainty surrounding Brexit vote outcome, as consumer confidence unexpectedly rose during the month of August in Europe’s largest economy, according to a closely-watched survey.

GFK’s consumer confidence index registered an unexpected rise to a reading of 10.2 for August, its best reading since June 2015. However, the GfK said the two Islamic State-inspired attacks have left a dent in economic expectations, which are now sharply down compared with the same period last year.

GfK further said that the consumer result suggest a 2 percent rise in private consumer spending for the year. It further mentioned that, the consumer confidence has painted an overall picture that the recent rise in general uncertainty caused by the Brexit decision and the noticeably increased fear of terror following the attacks in Bavaria have managed to withhold public confidence in the system.

"While consumers are rather reserved about overall economic development in the future, they are downright euphoric about their own financial situations," the GfK said.

Meanwhile, comparatively good news came post an unusually bad week for the German economy following disappointment in both Markit’s purchasing managers’ index and Ifo’s business confidence survey.