Germany's consumer confidence index is expected to reach a record high in December since 2001, the Nuremberg-based Gfk group reported on Tuesday.

After the revised figure of 9.3 points in November, the consumer climate is forecasting 9.4 points for December, the highest level since November 2001, according to the group.

"The trend in the consumer climate is stable as the end of 2006 approaches. The outlook for the economy was perceived as somewhat more optimistic again in November," the Gfk said in a press release.

As the Christmas season is going on and the value-added-tax increase is coming in the new year, German consumers are having a spending spree.

"The rational decision to bring forward purchases to miss the impending VAT increase in particular is likely to provide an additional boost in domestic demand at the year-end," the Gfk said.

Another survey of around 2,000 consumers carried out recently by the GfK confirmed that there had already been significant "bring-forward effects" with more to come by the end of the year.

The survey found that one in five consumers in Germany had already brought forward larger purchases to this year starting from October and 11 percent of the surveyed stated that they intended to make the most of the lower VAT rate before the end of 2006.

Consumers currently expect that the present pace of economic growth will somewhat weaken in the current year and slow down further in the coming year.

Moreover, there is also likely to be a slowdown in the global economy and the interest rate hikes expected from the European Central Bank will also curb expansion.

The GfK Group is the No. 4 market research organization worldwide. Its activities cover five business divisions, Custom Research, Retail and Technology, Consumer Tracking, Media and HealthCare.

The group has 13 subsidiaries in Germany and over 130 companies in more than 70 countries and regions.

Source: Xinhua