Consumer confidence in Germany dipped to the nadir in 14 months in March, a key indicator released Monday showed.

The forward-looking index compiled by Nuremberg-based market research company GfK fell from revised 4.9 in February to 4.4 points in March, the lowest since January last year.

The fall, in line with economists' expectation, was the index's fourth straight decline as a value added tax increase in January dampened consumers' appetite to buy large commodities.

The index was based on a survey of around 2,000 people in Germany.

A sub-index measuring consumers' willingness to make large purchases such as washing machines and televisions fell to minus 16 from minus 5.1, the GfK said.

The German government raised VAT from 16 percent to 19 percent since Jan. 1 and plans to increase health insurance costs.

"However, given the current situation, it is quite possible that the present low will be overcome in the second quarter," the GfK said in releasing the confidence reading.

Source: Xinhua