A new survey shows German consumer morale to be at its highest in 10 months.
The report, by the GfK market research institute, found that confidence had improved for the fifth month in a row.
It is another sign that consumption may support Europe’s biggest economy while others dip into recession.
The consumer sentiment indicator, based on a survey of 2,000 Germans, rose to 5.9 – the same point where it stood last April – compared with economists’ forecast for a reading of 5.6.
“Private consumption can do what it’s supposed to — provide an important support for the economy this year,” GfK said in a statement accompanying survey data.
“It is above all important that trust lost during the crisis is restored,” it added. “Decisive and lasting action by policymakers would be a key way to win back trust.”
Germany’s export-driven economy recovered quickly from the 2008/09 financial crisis, but the outlook has darkened as euro zone debt worries have begun to weigh on the real economy.
It comes one day after another survey showed German business sentiment up for the third month in a row.
The Munich-based Ifo think tank said on Wednesday its business climate index, based on a monthly survey of some 7,000 companies, rose to 108.3 in January from a revised 107.3 in December.
That was the highest level since August and the biggest monthly increase in 11 months.
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