Though economists have cautioned that the German economy still remains in a 'tough spot,' German analyst and investor sentiment rose to its highest level in June - ever since May 2006 - thereby marking the eighth monthly rise in a row! The European single currency Euro soared against the dollar - climbing from 1.3793 dollars to 1.3899 dollars in New York late on Monday.

Other top indicators on the German economy - the biggest in Europe - have shown improving conditions. The poll of economic sentiment, conducted by Mannheim-based ZEW economic think tank, indicated a rise to 44.8 in June from 31.1 in May, thereby beating the 35.0 rise forecast in a Reuters' poll. Meanwhile, another measurement of present economic conditions also increased to -89.7 from -92.8.

Expressing the wariness of economists, with regard to the country's actual economic condition, Rainer Sartoris of HSBC Trinkaus said: "The survey gives the impression that we could be looking at normal economic activity again by the end of the year. We do not see things this way. Survey participants are somewhat removed from the real situation, which is still very bad."

Even the Finance ministers from the Group of Eight economic powers recently cautioned in their communiqué that though the economies are showing stabilization signs, the situation is still quite "uncertain," with considerable hazards in the way of economic and financial stability.