The rise comes despite a weaker backdrop by household finances, which are being squeezed as inflation outpaces wage growth.
"James warned, however, that the second half of the year was likely to prove more challenging overall amid a weak consumer backdrop".
It cautioned that Germany's medium-term growth prospects remain subdued against a weak international backdrop, lingering uncertainty about future energy costs and looming demographic changes.
Given the weak growth backdrop, we could as easily see some of the more hawkish members move back towards the middle ground, as see those in the middle start voting for higher rates.
"Trading conditions in our largest and most significant market, France, were particularly difficult and deteriorated across the quarter, impacted by the weak economic backdrop," said Sir Ian Cheshire, the chief executive.
James warned, however, that the second half of the year was likely to prove more challenging overall amid a weak consumer backdrop and as the benefits reaped after the collapse of the rival company Comet at the end of 2012 made for a difficult comparative period.
However, the carrier saw a drop in its freight business due to the weak economic backdrop in Europe.
Such an outlook for the dollar at a time of modest recovery has created a weak fundamental backdrop for the greenback.
Yeung looks to LDK Solar as a turnaround story in 2011, despite the challenges in the solar and renewable industry due to the weak economic backdrop.
Faced with a weak economic backdrop, Canadian Pacific launched a hostile bid to buy Norfolk Southern, in an effort to bring its cost discipline to one of America's largest railroads.
