German Consumer Confidence Up

The group said its forward-looking consumer climate index rose to 4.6 points for April, up from 4.5 points for the first time since January.

The group credited positive trends in the German labor market, along with wage increases won by unions in collective bargaining agreements for lifting expectations among consumers.

Yet at the same time, the group warned that "uncertainty persists among German citizens with regard to economic developments."

Analysts insisted such tentativeness reflected persistent caution among German consumers.

"Although the current increase in the willingness-to-buy cautiously raises hopes that consumer restraint won't intensify further, above all the dampening impact of the continuing strong price increases on real incomes also from pensioners keeps the upward potential within a limit," wrote Alexander Koch, an analyst with UniCredit Markets.

On Wednesday, another key survey reported that German business confidence rose unexpectedly in March, the third straight increase despite the near-record strength of the euro and some concern over the future outlook.

The Ifo institute's index rose to 104.8 points for March from 104.1 in February. Economists surveyed by Dow Jones Newswires had forecast that the index would decline to 103.4 points.