The German consumer confidence has unexpectedly increased despite the fact that Europe’s biggest economy is beginning to feel the effect of the global economic slowdown.

The Nuremberg-based market research group GfK released its widely watched survey on Monday, showing that the index jumped to 5.9 points in April, compared to the 4.5 points the previous month. This happened as the expectations of higher wages and the fall of unemployment rose.

The survey, which is based on responses from around 2.000 consumers, was expected to fall to 4.5 points in May.

The results of the survey surprised as a previous publication of key indicators showed that the German businesses are to face a downfall due to the growing international economic gloom and inflationary pressures.

"Despite continuing turbulence in international financial markets and higher food and energy prices, German consumers are becoming more optimistic," the GfK report said.

According to the survey, the decrease in unemployment and the higher wage settlements that follow stagnation in Germany are expected to improve conditions for the consumer sentiment to rise in the next months.

The news is to increase hopes that Germany would be able to successfully face the economic troubles caused by the subprime mortgage market crisis in the United States.

However, the last consumer confidence survey came in the same time with signs that the inflation is resurging due to the sharp increase in crude oil prices. In effect, the GfK warned: "Inflation must weaken in the next few months if consumer confidence is to continue its positive developments."