Germany's jobless rate rose slightly by 0.2 percentage points to 6.8 percent in July, but remained at a two-decade low, official data showed on Wednesday.

In July, the number of unemployed people increased by 49,000 over June to 2.914 million. "The increase is primarily due to the fact that young people are temporarily out of job at the end of their education or training," said German Federal Labour Office in Nuremberg.

Adjusted seasonally, unemployment fell by 7,000 million in July. Compared with the same period last year, 38,000 more people was registered as unemployed.

The unemployment rate in the Europe's largest economy remained at a two-decade low and was among the lowest in the euro zone.

"In the second quarter, the German economy grew strongly again by all indications. This also benefits the labor market," said Frank-J. Weise, chairman of Federal Labor Office.

Private consumption was considered as the main growth engine of German economy, which was expected to recover this year after a contraction of 0.7 percent in the last quarter of 2012, and a slightly growth of 0.1 percent in the first three months this year.

Earlier this week, Nuremberg-based GfK research institute found in its study based on 2000 consumer interviews that German consumers' mood peaked in July because of stable labor market, moderate inflation and historically low interest rate. Their income expectations increased for a fourth consecutive month to the highest value since June 2011, while willingness to buy rose to the highest level since January 2012.