Germany's economic outlook is gradually brightening, according to the Bundesbank.
Following the slight increase at the beginning of the year, economic output is likely to rise again slightly in the second quarter, according to the central bank on Wednesday.
"Overall, the underlining trend shows the economy is gradually picking up speed," the bank reported.
The Bundesbank expects positive signs from service providers and private consumption in the second quarter. This is indicated by the ifo Institute's survey results for the consumer-related service sectors of retail and hospitality, the experts wrote.
"Rising real disposable household incomes are therefore likely to gain the upper hand over consumer uncertainty."
According to the Bundesbank, however, the industrial economy is likely to remain subdued for the time being.
According to preliminary data from the Federal Statistical Office, the German economy grew slightly by 0.2% in the first quarter compared to the previous quarter.
A second reading will be published by the authority on Friday.
Last year, Europe's largest economy slipped into a slight recession with a price-adjusted decline of 0.2%. The export-orientated German economy felt the effects of the slowdown in the global economy as well as the temporarily high energy prices and the rapid rise in interest rates.
According to the Bundesbank, the inflation rate is likely to rise again in May and "could fluctuate around a slightly higher level in the coming months."
