Weak Germany, France hit euro-area rebound hopes

Bloomberg

Key gauges of confidence in the euro area’s two largest economies unexpectedly deteriorated, signalling that a long-expected rebound may still be some way off.
Manufacturing has been at the heart of economic weakness in Germany, fed by fears of protectionist trade policies and weakening global demand. In France, disruption caused by Yellow Vest protests has damped growth momentum. Consumers too are getting nervous, with a euro-area mea-sure down at a four-month low.
Ifo said its closely watched index of German business sentiment dropped to 99.2 in April, missing forecasts for a slight improvement. Measures for current conditions and expectations among executives declined. In France, confidence in manufacturing slumped to the lowest level in almost four years as business leaders’ assessment of their own production plunged.
At the European Central Bank, policy makers expect a stabilisation, and possible improvement, during the year. They’re awaiting an update of their own projections in June to pass judgment over the sta-te of the economy, and have already prolonged record-low interest rates.
Subdued momentum across the 19-nation euro area has triggered a range of downgrades in the economic outlook. In Germany, the government has slashed its full-year projection to predict the weakest growth in six years.