Upbeat German shoppers

Market research group GfK said Thursday its German consumer confidence index rose by 0.2 points to 8.7 points for December, marking the second uptick of the benchmark barometer in a row.

The group said Germans were well aware of ongoing geopolitical tensions and their potential impact on the Germany economy. At the same time, they viewed their financial situation and economic prospects as solid.

The GfK argued that widespread optimism was primarily based on a very robust labor market, with fewer people having to worry about losing their jobs.

Spending spree

"And mind the low inflation rate," GfK researcher Rolf Bürkl said in a statement. "It means that pay hikes and increased pensions leave people with more in their pockets at the end of the day."

He also pointed to rapidly sinking heating and fuel costs as oil prices hit a four-year low.

"Filling up your cars at the pumps hasn't been so cheap in many years," Bürkl said.

The uptick in consumer confidence is good news for retailers across the nation who are hoping for smooth Christmas shopping. The HDE retailers' association expects record income to the tune of 85.5 billion euros ($106.6 billion) from seasonal shopping which would amount to a 1.2 percent increase over last year.

hg/cjc (Reuters, dpa)