EURPLN Exchange Rate

Germany's consumer confidence is set to rise again in May to hit a two-year high as households turned more optimistic about future income, adding to the list of positive indicators that suggests the biggest euro area economy is likely to undergo a very shallow recession. The forward-looking consumer sentiment index rose to -24.2 in May from a revised value of -27.3 in April.

Germany's business sentiment strengthened for the third straight month to a near one-year high in April on a notable improvement in confidence among service providers. The business confidence index climbed to 89.4 in April from a revised 87.9 in March, monthly survey results from the ifo Institute showed on Wednesday. This was the highest score since May 2023, when the reading was 91.4.

The euro area private sector expanded the most in nearly a year in April as the continuing downturn in the manufacturing activity was offset the strength in the service sector, flash survey results from S&P Global showed on Tuesday. The composite output index registered 51.4 in April, up from 50.3 in March. The reading stayed above economists' forecast of 50.8.

Euro area construction output grew for a third straight month in February and at a stronger pace, mainly led by civil engineering works and rebound in building construction, preliminary data from the statistical office Eurostat showed Thursday. Construction output rose a calendar and seasonally adjusted 1.8 percent month-on-month following a downwardly revised 0.2 percent gain in January.

The performance of the dollar has seen a modest improvement, while equity markets exhibit a slight softening, influenced by the Federal Reserve's resistance to early easing and renewed attention on US regional banks.