New research shows that consumer confidence has risen by more than expected in Germany, boosting hopes of a recovery in Europe's top economy.
The GfK research group said its consumer confidence index for May rose to 3.8 points from an upwardly revised 3.4 points for April. Analysts had expected the index, which looks forward a month, to remain unchanged.
'Signs that the German economy is recovering are getting stronger. And consumers are taking them increasingly seriously, as their improved optimism shows,' the institute said in a statement.
GfK warned that rising fuel prices could yet hit consumer demand. But it noted that both economic and personal income expectations had improved among the 2,000 people surveyed, with the latter at a nine-year high.
