What's going on?

An important survey of German business sentiment has shown a pickup in recent weeks � another sign that the German economy might be doing better than was thought back in January and February.

What does this mean?

The survey, which was taken over the past few weeks, asks economists and financial analysts in Germany what they think of the state of the current economy and where it�s heading. The opinion of current economic conditions actually fell for a third consecutive month, but sentiment improved meaningfully for the future. While there are concerns about the economic impact of a possible British vote to leave the European Union (a.k.a. Brexit), the nascent recovery in China appears to be helping to paint a more positive picture moving forward (Germany exports a lot to China and other Asian countries).

Why should I care?

The bigger picture: Europe is far from out of the woods yet. There has been some better-than-expected data out of Europe lately (particularly from Germany). But the region on the whole is still struggling from very low inflation and relatively high unemployment. The recent rising value of the Euro against the US dollar isn�t helping matters (for one, it�s easier to sell goods abroad when one�s currency is cheap). It will be interesting if anything comes out of the European Central Bank�s meeting on Thursday that attempts to address the recent strength of the Euro.

For you personally: The increasing value of the Euro can be good and bad for you. With summer holidays coming up, perhaps you�re thinking of a trip abroad. Well, that probably got more affordable in the last month or so (especially if you�re going to America). It also makes it cheaper to buy things that are imported into Europe (although it takes some time for the price changes to pass through). The downside is that if European companies face a greater headwind (especially in this fragile economy), the employment situation could deteriorate� and then that summer holiday might not be looking so cheap after all.