German consumer confidence is set to slip early in the new year though remaining close to the highest in over three years.
That was the finding of a new survey of around 2,000 Germans by the GfK market research group.
The forward looking survey shows reduced expectations for the country’s strong economic growth.
But the head of GfK, Klaus Wübbenhorst, believes that is just the German public taking a bit of a breather from the overheated levels seen recently.
He said: “We have witnessed something of a consumer winter fairy tale in the fourth quarter and over the Christmas shopping season. We expect a spring fairy tale next year. Overall conditions are good: low unemployment, higher income – German consumers have more money in their pockets.”
Expectations for robust wage growth were lower and higher fuel and energy prices depressed overall sentiment.
The willingness to spend also fell but remains at what GfK called “an extremely good level.”