GfK's headline confidence indicator rose 3 points to -13, slightly better than analysts' forecasts of a rise to -15, and continuing an unbroken string of monthly increases in place since January.

However, households' view of how much the economy would strengthen over the next 12 months worsened slightly from September -- when it was the most optimistic since May 1998 -- dropping to 3 from 4.

"Consumers are still wary of the future and so the overall trend towards uplift is still fragile," said GfK's Rachel Joy.

The survey, conducted for the European Commission, also showed that shoppers' belief that now was the right time to make major purchases was its strongest since November 2007.

A temporary cut in value-added tax to 15 percent from 17.5 percent is due to end on December 31, and incentives to trade in second-hand cars for new ones expire early in 2010.