Germany's economic sentiment improved strongly and at a faster-than-expected pace in September, after a slump in August, survey data from the think tank ZEW showed Tuesday.
The ZEW investor confidence index climbed to -22.5 from -44.1 in August. Economists had expected a -38 reading. The score was close to the -21.1 logged in June, but remained below the long-term average of 21.5 points. The current conditions index of the survey, however, fell to -19.9, the lowest level since May 2010, from -13.5 in August. Economists had expected a decline to -15. "The rise of the ZEW Indicator of Economic Sentiment is by no means an all-clear concerning the development of the German economy in the next six months. The outlook remains negative," ZEW President Achim Wambach said.
The rather strong fears that financial experts had in the previous month regarding a further intensification of the trade conflict between the USA and China did not come true, Wambach noted.
Further, there is still hope that a no deal Brexit can be avoided, he said. Investor confidence was also boosted by the additional stimulus measures unveiled by the European Central Bank, Wambach added.
The economic sentiment index for Eurozone climbed to -22.4 from -43.6 in August. The current conditions index for euro area fell by 1.1 points to minus 15.6.