Munich – European business confidence has picked up for the first time in 18 months, according to a quarterly survey released Wednesday by the Munich-based ifo economic research institute.

After six successive reductions, the quarterly indicator of the economic mood in the 16-member eurozone rose from 45.8 to 55.1 points.

The survey is based on judgements of the current and future health of the economy by experts working for multinational corporations and economic institutes within the eurozone.

The upturn in the second-quarter figures resulted from an improved confidence that the economy would pick up in coming months. The index of future expectations rose from 49.6 to 76 points, with all countries except Greece predicting a degree of economic recovery.

“In contrast, the judgements on the current economic situation have further worsened, reaching a new historic low,” ifo President Hans-Werner Sinn said.

The index judging the current economic climate plummeted from 41.1 to 29.9 points.

Economists in Germany, Italy, Belgium and Luxembourg predicted an improvement, while Austrian, French and Dutch experts thought the economy would stabilise in the coming six months.

Annual inflation was expected at 1 per cent, which is significantly lower than the target rate of the European Central Bank. (dpa)