The Ifo Business Climate Index for German trade and industry rose to 108.6 points in April from 107.9 points last month based on the latest data. Using historical time series, current reading signals growth in excess of 2%.
However, Q1 2015 was relatively weak for German indicators.
Present situation index for Germany in Q1 2015 was 112.0 against 115.2 a year ago. Expectations for the next 6 months index was 103.9 in Q1 2015 against 106.3 a year ago. Economic Climate index - overall index of activity - in Q1 2015 stood at 107.9 down on 110.6 in Q1 2014.
German performance in Q1 2015 was reflective of a similar trend in the euro area. Euro area present situation index in Q1 2015 was at 117.5 - well below 120.3 recorded in Q1 2014, while 6months forward expectations index was at 109.8 against 119.7 a year ago. Overall, euro area economic climate index finished Q1 2015 at 112.7, which was below 119.9 recorded at the end of Q1 2014.
Unless April reading signals sustained uplift for Q2 2015, things are not exactly exciting.