"Overall, current data show that the cyclical upturn in the German economy continued in the spring," the German central bank wrote.

"However, overall economic growth will not have been as high as at the beginning of the year," the report cautioned.

While consumer spending quickly recovered from the dent caused by the sharp rise in value-added tax (VAT) at the beginning of the year and exports continued to make a positive contribution to growth, investment activity dipped in what was likely to be a technical reaction to the favourable winter months experienced in sectors such as the construction industry, the Bundesbank said.