German consumer confidence hit its highest level in a year, new data has shown, fuelled by households’ rising income expectations despite the eurozone debt crisis.

Market research company GfK released its latest index of household confidence, with the barometer forecast to rise fractionally to six points in March from 5.9 points in February, a statement said.

That will bring it to its highest level since March 2011.

“Overall, consumer sentiment remained stable in February. While both economic expectations and consumers’ willingness to spend slipped slightly, income expectations rose perceptibly,” GfK said.

The headline consumer confidence index is based on responses from around 2,000 households with regard to their expectations about pay and the economy as a whole in the coming months, as well as their willingness to spend money.

Economy Minister Philipp Roesler hailed the seemingly unstoppable rise in consumer confidence. It showed that “the domestic stimuli for the economy remain intact,” Roesler said. “The German economy is continuing to excel in a very difficult environment in Europe.”

Germany has indeed managed to shrug off the worst of the eurozone debt crisis thanks to deep structural reforms implemented in recent years, notching up robust growth of three per cent last year, while unemployment fell to record lows.

And with unemployment set to remain low, domestic demand is expected to be able to offset any weakness in exports resulting from the debt crisis, according to economists.