German consumer sentiment lost a little ground in December following six months on the rise, a survey showed yesterday, but households still expect the German economy to grow more.

The GfK market research group said its household confidence index eased back to 5.4 points from 5.5 points in late November.

Although consumer expectations were less upbeat, most of the roughly 2,000 people polled still believed Europe’s biggest economy “is well on course for recovery,” a statement said.

Expectations regarding personal incomes and shoppers’ propensity to make large purchases remained intact, “and the moderate declines in December of this year do nothing to change this picture,” it added.

German consumers should thus contribute to growth in 2011, providing support for an economy that has typically relied on exports.

In its latest reading of German business sentiment released Friday, the Ifo economic research institute found that confidence ended the year at an all-time high thanks notably to a leap in the retail sector.

Despite the slight decline in the latest GfK index, ING senior economist Carsten Brzeski said: “German consumer confidence remains high and it looks as if German consumers are finally waking up.

“Even if it will not be a US-type spending spree or a housing market bubble, it looks as if the ‘being-stingy-is-cool’ mentality could clear the way for a new decent consumption rally in Germany.”