The prospects for the German economy are booming considerably this month, according to a key analyst and investor survey, indicating that the European largest economy may gain momentum after the slowdown in recent months.

The European Center for European Economic Research (ZEW), measuring the expectations of German investors, rose to 3.1 points in April. The indicator went into positive territory for the first time since March 2018. By comparison, the index was at -3.6 points in February.

The March result outpaced the consensus forecast, which was also up for gain, but only 0.8 points.

The Munich-based research institute said that improved moods are largely due to the hope that the global economic environment will perform better than earlier expected.

The geopolitical factors such as the tension between the United States, Europe and China in terms of trade and the Brexit have tormented Eurozone and Germany.

The ZEW Institute said in its monthly report that the postponement of the deadline for Brexit could contribute to improving the economic outlook. The UK initially had to leave the block on March 29th, then the process was postponed to April 12, and then to the autumn.

The ZEW Index is another signal that the German economy is in a process of gradual recovery.

However, the Institute’s report notes that the outlook for the German economy over the next six months remains strongly suppressed and the current economic conditions are weakening.

According to the survey, the index, which assesses the current economic situation in April, fell to a level of 5.5 points. This is the seventh consecutive monthly decrease in the assessment of the current situation.