GfK index at 14-year high

Consumer confidence in Germany is at its highest since late 2001 as optimism about the economy abounds.

German market research group GfK said Thursday that its forward-looking Consumer Sentiment Index had risen from 9.3 points in February to 9.7 points in March - the highest reading since October 2001.

The rise came as global crises such as the Ukraine conflict and the debt problems in Greece were "not leaving much of an impression" on German consumers, GfK said in a statement.

"The drop in energy prices is boosting the purchasing power of private households and opening up room for further spending. As a result, income expectations and the propensity to buy are increasing as well," the research group added.

'A clear upward trend'

In March, the German consumer climate would remain in "a clear upward trend," GfK noted, with household spending continuing to "contribute substantially" to overall economic growth in Europe's largest economy.

GfK forecast private consumption would rise by 1.5 percent in the whole of 2015, in line with figures for an expected increase in gross domestic product (GDP).

Sentiment in the German economy is generally seen as buoyant, as a weaker euro and falling oil prices boost consumers' purchasing power and companies' competitiveness in foreign markets.

The widely-watched Ifo business climate index also rose for the fourth time in a row in February to its highest level in seven months.

uhe/cjc (AFP, dpa)