German GfK consumer sentiment picks up heading into December

BERLIN (Reuters) - German consumer morale improved for a second month heading into December, suggesting a brighter ending to the year for Europe's biggest economy after it narrowly avoided a recession in the third quarter.

Market research group GfK said on Thursday that its forward-looking consumer sentiment indicator, based on a survey of around 2,000 Germans, rose to 8.7 going into December from 8.5 in November.

"The consumer climate is improving as the year draws to a close," GfK said.

Uncertainty linked to geopolitical tensions -- reflected in a drop in the economic expectations component of the index -- had not yet dampened income outlooks or willingness to spend, GfK said. But it warned that a deepening of the crises in places like Ukraine and the Middle East could undermine consumption as pillar of the German economy.

The results matched the highest estimate in a Reuters poll of 19 economists. The consensus forecast had been for a reading of 8.6.