German consumer morale holds steady despite risks

German consumers remain in the mood to shop heading into 2019 but concerns about external risks to the German economy are mounting, a key survey found Friday.

Market research firm GfK said its forward-looking barometer stood at 10.4 points for January, unchanged from December when morale dipped slightly on the previous month.

The survey of some 2,000 people showed a mixed picture however.

Respondents were more optimistic about their income expectations at the turn of the year, boosted by a strong labour market and high wages.

But their outlook for the German economy fell to a near two-year low, sapped by US-led global trade tensions and uncertainties over Brexit.

Amid concerns of a slowdown in Europe's export-oriented powerhouse, consumers were less likely to splash out on big purchases, GfK found.

But overall, the shopping mood was still at a "very good" level.

"The consumer outlook for 2019 remains favourable," GfK said in a statement, assuming that the "excellent" labour market conditions continue.

But clouds are gathering, the pollsters cautioned.

"A further escalation in the trade conflict with the United States or a disorderly departure by Britain from the European Union would certainly weigh on the consumer climate."

For 2018, GfK said it still expects to see a real-terms increase in consumer spending of 1.5 percent.