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mpc: 9 The prospects for euro-area growth over the rest of 2005 depended in large part on growth in consumer spending, which had been particularly weak in Germany. Consumption growth seemed unlikely to pick up without more rapid growth in real labour income. There was a risk that continued weak consumption growth might in turn discourage investment, which might also be vulnerable to any further appreciation of the euro against the US dollar. However, falling unit labour costs had improved the price competitiveness of German firms, which should further improve profits, encourage investment and, in time, lead to higher income and consumption growth in Germany.