Perky December sales helped stabilise turnover in Germany's retail season at the previous year's level and could even cushion an expected full-year fall, the HDE retail lobby group said on Monday.
"Overall December was positive. After a weaker November this helped to keep 2004 levels," HDE said in a statement. HDE said shoppers took to the high street in the last week of December to swap their money presents, especially for books and perfumes.
The late shopping spree could even trim the one percent fall the lobby group had predicted earlier for the full year of 2005.
"It could be that we see a fall of less than one percent," said HDE spokesman Hubertus Pellengahr, also reiterating his forecast of a slight plus for 2006.
"We don't see this as a turnaround though. There will be some one-off effects in 2006 from the World Cup and from the sales tax hike (expected for the start of 2007)."
According to HDE, shoppers in Germany generate 19 percent of annual turnover in November and December. In 2004, shoppers spent some 68 billion euros ($80.5 billion) in the final two months of the year.
Recent evidence points to a pick-up in sluggish private consumption, which accounts for some 60 percent of gross domestic product and has been a drag on the German economy for years.
Last week, data from market research group GfK showed that German consumer sentiment was set to brighten in January, reflecting greater willingness to buy and soaring domestic confidence.
The group's forward-looking consumer gauge rose to 3.8 in January from an upwardly revised 3.4 for December and outstripped economists who had forecast a median of 3.3.
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