Belgian business confidence beat economists' expectations by rising sharply this month, with one analyst saying it could signal a possible European economic revival after weak German data.
The business confidence index, often referred to as the leading indicator, rose to 5.5 points from 3.9 in May, the country's central bank said today.
A poll of 25 economists had produced a median forecast of 3.9. Earlier, the closely watched German Ifo business climate index declined more than expected for June with all sectors of the economy becoming more pessimistic about business.
"It's surprising that it's that strong because we had the German Ifo, which was weaker," ING economist Erik Sonntag said.
"There could be a domestic effect from Belgium's general election earlier this month because the socialists may lose out in the next government, he said.
"Also, Belgium is earlier in the euro zone cycle so this could be a signal of a revival," Mr Sonntag continued.