Optimism grows on outlook for German economy

The run of good news for the German economy, the biggest in Europe, looks set to continue for some time yet, with Bundesbank President Axel Weber arguing on Monday that current growth marks only the beginning of a longer upturn.
And that is likely to strengthen the European Central Bank's arguments for further monetary tightening in the 13-country eurozone, analysts said.
In an interview published in the daily Frankfurter Allgemeine Zeitung on Monday, Bundesbank chief Weber said the recent slew of favourable economic news coming from Germany was only the beginning, hinting that the central bank might upgrade its growth forecast for the current year. Faster growth coupled with accelerating inflation will provide additional ammunition for the ECB to raise eurozone borrowing costs - already at a five-and-a-year high - again later this year to prevent the economy from over-heating.