German confidence climbs to six year high ahead of Christmas

German shoppers are more optimistic about the state of the economy - as Chancellor Angela Merkel prepares to form a coalition government.

Gfk's survey of consumer confidence has jumped from 7.1 to 7.4 in December. Last month's figure was revised up - from 7.0 to 7.1. Economists had expected a slight lift from 7.0 to 7.1 in December.

Berenberg's Christian Schulz says that "bodes very well for the decisive Christmas shopping season". Schulz sees strong fundamentals for householding spending, as Germany enjoys very low unemployment, while employment continues to climb to new record highs.

As the new government will avoid tax increases, Schulz says that "the foundations for a stronger consumption expansion are in place."