A survey has found that German consumer confidence is continuing to rise on the back of a strong labour market and the prospect of more robust economic growth.
The GfK research institute said its forward-looking consumer climate index rose to 7 points for August from 6.8 in July - the highest level since September 2007.
GfK said "the continued stability of employment prospects and a moderate rate of inflation caused optimism to rise."
Recent economic data have bolstered expectations that the German economy, Europe's biggest, is on track to rebound from a lacklustre performance over the winter.
Germany's unemployment rate was 6.6% in June, which contrasts sharply with other countries that use the euro, such as Greece and Spain, where the jobless rate is over 25%.
