German consumers are expecting the highest income level since reunification, market research group GfK reported on Friday.

Following a high value of 8.9 points in July, the overall indicator is forecasting 9.0 points for August, the best level since December 2006 with 9.1 points, according to GfK's monthly report.

The report, made up of three parts, shows that the indicator values for income expectations in July rise by 7.5 points to 54.7 points, the highest level since reunification.

The indicator values for economic expectations and for willingness to buy fall slightly to 45.9 points and 51.0 points compared to June.

"The unemployment is relatively low and employment continues to increase," the Nuremberg-based research group stated in its report.

The stable labor market is the basis for noticeable income gains. A plus on the pay slip will also be more noticeable, as inflation currently is comparatively low.

However, there are still some risks for the consumer economy. Those threatens come from abroad and are likely to have been reinforced recently.

In addition to the escalation of the situation in Israel and the Gaza Strip, it can not be excluded that the crash of a passenger aircraft from Malaysia Airlines on the Eastern Ukraine could deteriorate the mood significantly.

GfK Consumer Climate survey has been conducted since 1980, whose findings are based on around 2,000 consumer interviews conducted each month on behalf of the European Commission.