based Organization for Economic Cooperation and Development (OECD) cut its 2004 forecast for U.S. economic growth to 4.3 per cent from a previous forecast of 4.7 per cent." Overall it is a picture of uncertainty," said Guntermann with some analysts predicting that a possible improvement in the Ifo report's component measuring current business conditions failing to offset a drop in the survey's business expectations gauge. Also overhanging the eurozone is a shift in expectations about interest rates with a growing number of analysts believing that the signs of a more hawkish stance by the European Central Bank's 18-head governing council could mean that the bank will join the world's other central banks and start to hike up rates. "The governing council is still very vigilant about any development which might involve risks to price stability in the short, medium term," ECB chief Jean-Claude Trichet told the European Parliament's Economic and Monetary Affairs Committee and insisted that the eurozone's recovery was maintaining its momentum. Earlier this month another a key German sentiment survey showed investor confidence dropping sharply in September. Indeed, the so-called ZEW index which is acts as a curtain raiser to the Ifo report, fell to its lowest level in 15 months. --MORE 2352 Local Time 2052 GMT
