Market pundits in Germany have displayed growing optimism about their country's medium-term economic development. A sentiment survey saw them positive about both domestic demand and improvements in the eurozone.
German investor confidence jumped more than forecast by analysts, a closely-watched survey by the ZEW economic research institute in Mannheim showed Tuesday.
The overall index gauging the mood among institutional investors climbed to 42 points in August, up from 36.3 points in July. Analysts had only penciled in a rise to little under 40 points.
The surge in optimism about future economic developments came amid growing optimism that the eurozone's recession might be coming to an end soon.
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"Also supporting investors' confidence has been robust domestic output and demand," ZEW President Clement Fuest said in a statement. "And those polled felt there were signs that crucial eurozone members might leave recession behind in the not-too-distant future."
The sub-index measuring investors' assessment of the current situation also went up sharply. It rose by 7.7 points to 18.3 points in August.
The German Economics Ministry shared the optimism displayed by the market experts. It said it expected 0.75-percent growth for the second quarter, after a meager 0.1-percent in the first three months. Official Q2 growth figures are to be announced on August 14.
hg/dr (dpa, AFP, Reuters)