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Apr 27, 4:24 AM EDT

German consumer confidence amid strong domestic demand

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BERLIN (AP) -- A closely watched survey shows German consumer confidence is on the rise, indicating there is an expectation Europe's largest economy will regain momentum in the coming months as increased employment, income growth and moderate inflation help domestic demand.

The GfK research group said Wednesday its forward-looking consumer climate index rose to 9.7 points for May, up from 9.4 points in April and above economists' expectations it would remain flat.

GfK says the index figure was buoyed by an increase in income expectations to a nine-month high amid a strong labor market, and also increases in economic expectations and in consumers' propensity to buy.

GfK says consumers believe "domestic demand will continue to be the essential pillar of the German economy."

GfK's monthly survey is based on some 2,000 consumer interviews.

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