(MENAFN– ecpulse) German business confidence, based on a survey of 7,000 executives, unexpectedly advanced in April, providing hopes the Germany is capable of leading the euro area to recovery despite the undergoing hurdles.
The business climate index climbed to 111.2 in April from 110.7 recorded in February, coming below forecast of 110.4, the Ifo institute said on Monday.
The current assessment gauge edged up to 115.3 from a prior 115.2, compared to forecast of 115.6.
The expectations measure jumped to 107.3 from a prior of 106.4, higher than projection of 105.8.
A report released on April 15 showed that German investor confidence resumed its drop for a fourth month in April, as the index of investor and analyst expectations retreated to 43.2 from 46.6.
“The seasonally adjusted GDP growth rate for the second quarter will be significantly lower, simply on the account of the heightened level attained in the first quarter resulting from the very mild winter weather,” Bundesbank monthly report for March said.
However, data released yesterday signaled a pick up in economic activities in the euro region’s biggest economy as a composite of manufacturing and services rose to 56.3 in April from 54.3 in March.
Still, there are risks to the modest recovery stemming from the unrest in Ukraine and the strengthening euro.
For the meantime, the focus would remain on further clues about the bank’s coming action after the drop in inflation to 0.5 percent.
While Draghi refrained from introducing new monetary tools to stave off the low inflation this month, he said the ECB has been preparing for new monetary tools to combat deflation.
As of 08:10 GMT, the euro traded higher around 1.3834 versus the U.S. dollar after hitting a bottom of 1.3811 and a high of 1.3841.
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