GfK survey reveal December consumer sentiment rise

GfK survey reveal December consumer sentiment rise A survey showed on Wednesday, Germany's consumer confidence gained momentum rose to a six-year high in December.

GfK market research group mentioned its forward-looking consumer sentiment indicator which forecasts the development of real private consumption in the following month was based on a survey of around 2,000 people, moved up to 7.4 during December, from a revised 7.1 in November.

It says Germany's economic expectations showed an upward trend for the third month in a row, touching their highest level in more than two years. The economy boosted by 0.3 percent in the third quarter, slower than the previous quarter's 0.7 percent but better than the euro area's overall performance.

The view of an increased recovery in the German economy and the cut in the benchmark interest rate by the European Central Bank offer an additional boost to the consumer attitude.

Forecasted private spending is expected to rise by around 1 percent this year. The research group said consumers will be the vital pillar of the economy this year.

GfK says prospects of economic growth also encouraged a leap in Germany's income outlook, and their willingness to buy edged up to a seven-year high.