BERLIN, Nov 27 (Reuters) - German consumer morale rose to a six-year high in December, a survey showed on Wednesday, supporting the view that strong consumption will make up for weaker exports and help Europe’s largest economy grow this year.
GfK market research group said its forward-looking consumer sentiment indicator, based on a survey of around 2,000 people, rose to 7.4 going into December, from a revised 7.1 in November.
DEC 13 NOV 13 DEC 12 Consumer climate 7.4 7.1 5.8 Consumer climate components NOV 13 OCT 13 NOV 12 - willingness to buy 45.7 44.4 29.4 - income expectations 45.2 32.7 17.8 - business cycle expectations 20.3 11.3 -14.6
NOTE - The consumer climate indicator forecasts the development of real private consumption in the following month.
An indicator reading above zero signals year-on-year growth in private consumption. A value below zero indicates a drop in comparison with the same period a year ago.
According to GfK, a one-point change in the indicator corresponds to a year-on-year change of 0.1 percent in private consumption.
The “willingness to buy” indicator represents the balance between positive and negative responses to the question: “Do you think now is a good time to buy major items?”
The income expectations sub-index reflects expectations about the development of household finances in the coming 12 months.
The additional business cycle expectations index reflects the assessment of those questioned of the general economic situation in the next 12 months.
Reporting by Annika Breidthardt