German corporate sentiment rose in April to its highest level in five months, a closely watched survey showed today, suggesting the downturn in Europe's largest economy may be easing.
The Munich-based Ifo economic institute said its business climate index, based on a monthly poll of around 7,000 firms, rose to 83.7 from 82.2 in March. The March reading was revised up from 82.1 previously reported.
The euro extended its gains against the dollar after the release of the stronger-than-expected headline number.
Highlighting the tough environment, German car parts group Robert Bosch said yesterday it would slash jobs this year in Germany and abroad as its sales slump as much as 15 per cent.
An Ifo index on current conditions rose to 83.6 from 82.7 in March -- its first rise in six months. An expectations index rose to 83.9 from 81.6 in March, the fourth rise in a row.
The Ifo report followed an unexpectedly strong survey of German analyst and investor sentiment from the ZEW think tank on Tuesday. The ZEW index rose in April to its highest level in almost two years.
Reuters