Economic expectations in Germany continued their rise in August, the Leibniz Centre for European Economic Research (ZEW) reported in figures released on Tuesday.
The ZEW expectations indicator rose by 7.9 points to 34.2. Economists had expected an average increase to only 30.
The expectations indicator, based on a monthly survey of around 300 financial experts, has now recovered for the fourth consecutive month, reaching its highest level since February. In February, before the war with Iran, economic expectations had stood at 58.3.
The assessment of the current economic situation also improved substantially, though it remained weak. The corresponding indicator rose by 16.5 points to minus 61.1. Economists had expected a figure of minus 69.3.
“The positive trend in expectations further consolidates in August, likely due to the good quarterly results and the recent high level in exports,” ZEW head Achim Wambach said.
“The German economy continues to benefit from the federal government’s infrastructure programmes, although the record low water levels on the Rhine River present an additional acute risk affecting economic activity,” he added.
LBBW bank analyst Elmar Völker said the improvement in sentiment in the German economy was continuing.
“Despite all the disruptions, from the unresolved conflict in the Middle East to the low-water crisis, financial market experts have shown growing confidence for the fourth consecutive time that the economy can withstand these challenges,” Völker said.
The German economy grew by 0.2% in the second quarter, following a slight increase at the beginning of the year. Strong exports helped: In June, goods worth more than €139 billion ($161 billion) were shipped around the world – the highest monthly total ever recorded.
Source: dpa
