FRANKFURT--German unemployment fell in January in line with expectations, the country's labor office said Thursday, suggesting that consumer spending should bolster activity in Europe's largest economy.

The number of unemployed fell by 9,000 in January after seasonal variations in the data, following a 25,000 drop in December. Analysts surveyed by The Wall Street Journal had forecast a decline of 10,000 for January. The seasonally adjusted unemployment rate was 6.5% in January, down from 6.6% in December.

Germany's solid labor market, along with the cheap energy prices, has supported consumer sentiment and spending. The monthly survey by GfK has predicted consumer sentiment will reach a 13-year high of 9.3 points in February, improving from 9.0 points in December.

Write to Emese Bartha at emese.bartha@wsj.com

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