The survey by GfK research group showed that the German consumer confidence remains steady, as low inflation and energy prices signal the economic turnaround may be in sight.

The company reported that its forward-looking consumer climate index for May stood at 2.5 points, same as in April and March.

However, GfK warned that leading German economists' had predicted last week the economy to shrink by 6 percent this year. Nonetheless, a closely watched business confidence index increased last week, mainly due to the expectations that the economy will recover later this year.

GfK stated that the economic outlook and income expectations had been positively affected by "factors which increase purchasing power, such as low inflation, lower energy prices and higher pensions, along with some isolated signs signaling a trend reversal by the end of the year." 

It should be noted that the export-driven German economy had gone into recession in the third quarter of the last year. 

The GfK survey is based on interviews of approximately 2,000 consumers.