German consumer sentiment dips in December: GfK

21st December 2010, Comments 0 comments

German consumer sentiment has taken a breather following six months on the rise, a survey showed Tuesday, though households still expect the German economy to grow more.

The GfK market research group said its household confidence index eased back to 5.4 points from 5.5 points in late November.

Although consumer expectations were less upbeat, those polled still believed that Europe's biggest economy had further room for expansion.

Expectations regarding personal incomes and shoppers' propensity to make large purchases remained intact, GfK said, and the slight decrease did not mark a fundamental shift.

German consumers should thus contribute to growth in 2011, providing support for an economy that has typically relied on exports.

In its latest reading of German business sentiment released Friday, the Ifo economic research institute found that confidence ended the year at an all-time high thanks notably to a leap in the retail sector.

© 2010 AFP

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