The latest data from Europe's largest economy Germany on Tuesday showed that while economic sentiment is improving, economic slowdowns and political risks elsewhere are a "burden" for the country's export industry, the main driver of Germany's growth.
The ZEW institute's latest Indicator of Economic Sentiment rose for the second month in a row in April with the index gaining 6.9 points from the previous month, to total 11.2 points. The index showed that investor morale had risen far more than expected in April, surpassing a Reuters consensus forecast of 8.0.
However, the survey of 225 German analysts and investors conducted between April 4-18 showed that their assessment of the current situation in Germany was worsening, with the gauge falling by 3.0 points to 47.7 points.
ZEW's head of research said the data was influenced by better economic data from China but that the world's second largest economy still posed a risk to Germany's export-driven growth.