In April, the Ifo business climate index is expected to stand at 107.7, down from 107.9 in March. While only a minor improvement is expected in the index in March, it rose more than expected, showing no signs of moderation.
However, with investor surveys weakening in April with the positive news flow ebbing and headwinds to trade still remaining,current conditions are expected to have softened somewhat while expectations may rise somewhat further.
"Following what is likely to have been a stellar Q1 for GDP growth, we expect expectations to settle for more sustainable growth rates slightly above potential in Q2. As before, we expect the export and manufacturing sectors to be less optimistic on the future outlook, while companies focused more on the domestic economy are likely to be more optimistic", said Societe Generale in a report on Monday
