German consumer confidence this month jumped to its highest level since before the introduction of the euro in January 1999, a survey showed on Wednesday. It is the latest indication that a broad-based recovery in Europe’s largest economy could finally be around the corner.

Encouraging data have coincided with rocketing opinion poll ratings for Angela Merkel, the new chancellor, after just a month in power. Ratings have also risen for her “grand coalition” of Christian and Social Democrats, the first since the 1960s.