German analyst and investor confidence dives in April
The Zew economic sentiment index has revealed German analyst and investor confidence fell more than forecast in April – the second consecutive monthly drop.
The index, which measures expectations of economic activity over the next six months, plunged to 7.6 from 14.1 points in March.
Analysts had expected the index to hover around the 10 or 11 mark.
The fall was attributed to the European Central Bank raising interest rates earlier this month and the ongoing surge in oil prices.
However, despite the fall, Germany continues to lead the recovery in Europe and yesterday the International Monetary Fund (IMF) forecast that Germany will grow 2.5% this year – up from a previous forecast of 2.2%.
Export demand helped to bring Germany out of recession in the second quarter of 2009 – much sooner than many of its counterparts throughout the world.
Meanwhile, Zew’s current conditions index edged higher from 85.4 in March to 87.1 – the highest since July 2007.
Both indices are based on a survey of 291 analysts and investors and conducted earlier this month.