German investor confidence resumed its drop for a second month in February after rising for five straight month in December, hitting the highest level in more than seven years. The index of investor and analyst expectations retreated to 55.7 in January from 61.7 in December, lower than median estimate of 61.5, the ZEW Center for European Economic Research in Mannheim said on Tuesday. The current situation gauge rose to 50.0 from a prior 41.2, compared to forecast of 44.0. Business confidence climbed to the highest in 20 months in December, as recovery started to gather momentum, yet the ease started with the begging of this year amid signs the euro area is lagging behind other developed nations. However, the Bundesbank expects growth to see further growth in the first quarter following the 0.4 percent expansion in the last three months of 2013. The German government also raised its projection for economic growth last week, as it now predicts the economy to grow by 1.8 percent this year, compared to a 1.7 percent expansion expected previously. PMI, which tracks growth in both manufacturing and services sectors, surged to 55.5 in January from 55.0 a month earlier. In the euro area, ZEW survey (expectations) plummeted from a record high of 73.3 to 68.5. The European Central Bank kept its benchmark interest rate at its record low of 0.25 percent this month, where it foresees a contraction of 0.4 percent this year followed by an expansion of 1.1 percent in 2014. Analysts, however, predicts the ECB to introduce new monetary measures next month to combat the undergoing deflationary pressures. Mario Draghi said the ECB has a wide range of monetary methods that could be used to fight any further drop in inflation. As of 10:05 GMT, the euro inched down to around 1.3716 versus U.S. dollar after hitting a high of 1.3725.