China boosts German business optimism, but challenges ahead

A key measure of German business optimism rose in April for the seventh month in a row amid lower natural gas prices and the reopening of the Chinese economy after COVID-19 restrictions. The Munich-based IFO institute’s confidence index has gone up to 93.6 from 93.2 in March. Analysts said Monday that the move was positive but did not erase the headwinds facing Europe’s largest economy as it struggles to avoid sliding into recession. Consumers are still holding back due to rampant inflation and energy prices still are high, even after utilities found new sources of gas after Russia cut off most of its supply to Europe.