There is a German series that came out a few years ago called “Generation War” (Unsere Mütter, Unsere Väter) that in many ways captures what the Germans were thinking at that time.
I am not sure if the average German knew it but have read that the German higher ups pretty much knew they would lose by late 1942.
if you read history the sentiments of the Germans in 1943 run parallel with the obama lemmings of today; everything was a-okay and they were the righteous ones because their leader told them so...
not trying to be a wise guy rather drawing a legitimate comparison....a lot of Germans were later horrified to find out what was behind those barbed wire fences after the war was over as they never let themselves admit what was happening in concentration camps- much the same today with the obama supporters...
IIRC, there were some good quotes from the book , “In the Garden of the Beasts” pertaining to this.
You might be able to get some answers from this documentary “The Fall of the Third Reich”. They use lots of words from letters and diary entries. It’s really well done, and a little intense at times.
https://www.youtube.com/watch?v=EsWjsdiOGFw
for later
No disrespect, but you need to learn some research skills. You will have to learn German or get a translator and go to source materials such as letters, memoirs, essays, articles, etc. Life did not stop in 1943 Germany. People wrote their relatives, made entries in their diaries, there were expatriate groups, etc. Books were written after the war. Don’t expect much of this to be in English.
Point is, this is not the place to learn about this subject.
By the end of 1943 the average German knew they were living on borrowed time.
Some knew it was over when Hitler declared war on the USA a few days after Pearl Harbor.
Goebbles came out with his “Total War” propaganda effort around that time.
“The Twelve Year Reich” was a good read. Covered various subjects...humor included.
I have an aunt, who passed away recently, who grew up in Berlin under Hitler and then under the Russians (they escaped to the West before the wall went up).
They were fairly well off financially and came from a fairly respectable family. The father was a symphony conductor and supposedly too old for the war (he fought in WWI I understand), and the children were all girls so didn’t of course get drafted.
So probably the impact of the war was minimal on them compared to a lot of others. The main think I asked her was what she thought about the Nazis taking away the Jews? What she told me is that the government told them that they were spies and enemies of the country, and you believed that your government was honest and not acting improperly, so you pretty much didn’t question what was happening.
I think about that quite a bit these days given what is going on in our country.
I can’t answer your question but perhaps this might be helpful. I remember my father who was lost behind enemy lines in WW2 telling me that he was given food and shelter and by German people who ultimately helped him return to his unit.
Watch “Swing Kids” ...
They Thought They Were Free: The Germans, 1933-45
by Milton Mayer
http://www.amazon.com/They-Thought-Were-Free-Germans/dp/0226511928

There is a good summary of it here: Redemption in the Garden of good and Evil
Certainly seeing constant Allied air raids destroy many German cities must have given many Germans an inkling that maybe things weren't going well. And the thousands of coffins arriving daily and disfigured and crippled German soldiers in plain sight must have given them pause.
By the last year I would bet most adults knew the war was lost. Otherwise Hitler and Goebbels would have been crowing about German victories.
https://archive.org/details/theythoughttheyw027497mbp
I second PA Engineers recommendation...Not sure if this is exactly what you wanted and presume there are many other excellent sources...
But...They Thought They Were Free, The Germans 1933-45, by Milton Mayer (pdf available at website above) is an insight into what it was like to be an ordinary German, and how Nazism affected them...
Fascinating read, highly recommended...
http://www.freerepublic.com/focus/f-chat/3079082/posts
The link is to the WWII thread that has the newspapers of the day - this one from Oct. 1943.
A couple pages in there is an article on what the German’s are reporting. The Soviets just marched through Ukraine (and all of the food it produces) and the Germans are getting pushed back hard. The German response in the news:
“The loss of prestige...is balanced by an increased war power derived by the Nazis. “This {loss] will be forgotten when the strategic advantages that have been won through a shortening of the front appear.”
I would imagine most of the Germans were still pretty upbeat based on the propoganda they were fed. (Just like today in America! Unemployment at record lows, historic treaty with Iran, model of success in Yemen....)
I personally know a few.
When the USA started the bombing runs, the average attitude was outrage and contempt. They thought we were scum and their crap did not stink. They were outraged. They were superior. How dare we shoot at them. Even fifty years later, they felt the same. That attitude did not change for many of them.
The other common thing, they say they had no idea jews were being exterminated. They just left, like snow in spring. Jew? What Jew?