Sentiment among German financial analysts picked up further in April, after a dire start to the year, pointing to modest economic growth in the months ahead.
The ZEW think tank said Tuesday that its measure of economic expectations rose to 11.2 points from 4.3 points in March, but stayed below its long-term average of 24.5 points. Economists polled by The Wall Street Journal had forecast a smaller increase to 9.0 points.
“Surprisingly positive economic news from China” boosted sentiment in April, said Sascha Steffen, the head of the ZEW’s research department.
But, overall, subdued demand from large developing economies, including China, continues to weigh on Germany’s export sector, while concern about the U.K.’s possible exit from the European Union also appears to be weighing on sentiment, he cautioned.
Illustrating those concerns, the ZEW’s measure of current economic conditions fell for the third consecutive month to 47.7 in April from 50.7 in March.