Expectations picked up strongly in the construction sector. This is remarkable, given that the government stimulus packages, which have given a sizeable fillip to public-sector construction, are now being unwound. Private construction demand – both residential and commercial – is evidently providing a hefty boost, buoyed by favorable financial conditions and rising incomes. The leap in business expectations in the services sector also points to brisk domestic demand. All this suggests that the German economy got off to a buoyant start in the new year. We are sticking to our forecast of 2.6% growth in Germany in 2011. The chances that growth will actually turn out somewhat higher are now greater than the risks that it will be lower.