Beat Wittmann, chief executive of TCMG Asset Management said the data confirmed a positive trend seen over the last few months and added to a recovery in domestic consumption.

"All in all I think there is a sustainable, steady but still slow trend," he told CNBC, adding that the data could have a positive effect on German equities.

The German DAX and euro fell after the news, however, and a number of economists believed it was too early to say whether the German economic recovery was meaningful or not.

Carsten Brzeski, senior economist at ING said the "great unknown" for the German growth outlook was private investment and that it was too early to tell whether the investment recovery was here to last. Meanwhile, the senior European economist at Capital Economics, Jennifer McKeown, warned that the recovery would not be rapid.