German's 2014 retail sales see strongest growth in four years

German retail sales increased in 2014 by 1.4 percent, the strongest growth in tha past four years, official data showed on Friday, confirming that private consumption played a key role in supporting the recovery of Europe's biggest economy last year.

Sales in German retail sectors increased for the fourth consecutive year in 2014, and hit the highest level since 2010 when the sales grew by 1.5 percent, German federal statistical office Destatis said.

In December 2014, the retail sales rose by 0.2 percent in calender, seasonal and inflation adjusted terms, weaker than strong monthly growth in previous two months.

The yearly growth in December, however, was the strongest in recent two and half years. Compared with the same month of 2013, retail sales increased by 4 percent in real terms.

Solid labour market, low commodity prices and interest rates were regarded as main contributors to dynamic private consumption in Germany. Dropping oil prices in recent weeks was also seen as a stimulus to consumption as it left consumers more money to spend on other goods.

Earlier this week, market research institute GfK said its indicator measuring German consumers' confidence surged to its highest level in more than 13 years.

German government now expects private consumption to play as the main pillar supporting the economy for another year in 2015, after it led a growth of 1.5 percent in German gross domestic product (GDP) in 2014. Endit