German consumer confidence will be unchanged in June, the latest survey by the GFK institute said yesterday, as official figures showed Germany was in its deepest recession since World War II.

GFK's closely watched barometer of consumer sentiment was stable at 2.5 points, the institute said. It has been virtually unchanged since March as consumers wait to see if Europe's largest economy has indeed hit rock-bottom.

"At last the signs are becoming clearer that the rapid decline in the German economy has come to its end and there are hopes of a cautious stabilisation this year," the institute said in a statement on its forward-looking survey.

Although consumers' view of likely economic developments improved slightly, it remained at a "very low level" GFK said.

The "rising fear of unemployment" is keeping a lid on consumer confidence, it said.

The data follow improved business confidence figures on Monday from the Ifo institute and cement the idea that while the worst is probably over for Europe's largest economy, any recovery will be slow and painful.

Official statistics released earlier yesterday showed that the first three months of the year were especially miserable for the world's top exporter.

Output contracted by 3.8 per cent compared to the last three months of 2008, the worst decline in modern German history, the Destatis statistics office said, confirming preliminary data.

The contraction - the fourth in a row - was due mainly to a plunge in exports of nearly 10 per cent.

The German government believes the economy will shrink by six per cent this year before creeping back into the black next year with a measly 0.5 per cent growth in output.