German investor sentiment rises again | Business| Economy and finance news from a German perspective | DW | 16.10.2012
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German investor sentiment rises again

A leading German economic think tank has indicated that investors in the country are more optimistic about future developments in Germany than a month ago. Feelings of uncertainty have diminished.

Investor sentiment in Europe's biggest economy improved for the second month in a row in October, the German Center for European Economic Research (ZEW) reported on Tuesday.

Its closely watched monthly survey polls analysts and institutional investors about business expectations for the coming months, and also asks them about their current assessment of the economic situation in Germany.

The investor confidence indicator climbed to minus 11.5 points in October, up from 18.2 points in the previous months.

"It shows that from the point of view of financial market experts the economic risks for Germany have lessened somewhat," the ZEW said in a statement. "The easing of uncertainty on the markets in recent weeks has contributed to this."

Slumping shipments abroad

The German economy has kept on growing despite the ongoing eurozone debt crisis. But future growth rates are hard to gauge, as the export-oriented country may increasingly be impacted by sagging demand in its major trading partners in Europe.

While analysts are fairly optimistic about future economic developments, their assessment of the current state of affairs provides a warning signal to be heeded by policy makers.

A corresponding ZEW index for October fell further to a reading of 10.0 points from 12.6 points in September.

hg/kms (AFP, AP, dpa)