April 2009 German ZEW Survey

The German ZEW investor confidence survey improved for the sixth consecutive month in April, with the index jumping to a two-year high of 13.0 from -3.5 in the previous month however, the current outlook for the economy slipped to -91.6 from -89.4, which is the lowest since September 2003, as the region faces its worst economic downturn in over half a century. The data suggests investors are holding an improved outlook for the future as policymakers take unprecedented steps to shore up the ailing economy and at the same time, the European Central Bank is expected lower the overnight lending rate to a record-low in May as growth and inflation falter. Meanwhile, the ECB is also anticipated to adopt unconventional measures to manage monetary policy beyond the interest rate to shore up the euro-region however, as the Governing Council fails to meet on common ground, the lack of decisive action could weigh on the outlook for future policy.