German investor sentiment at two-year high, ZEW survey shows
Tue 22 Jan 2013
LONDON (SHARECAST) - The ZEW Indicator of Economic Sentiment for Germany increased by 24.6 points in January to 31.5 points, thereby reaching its highest level since May 2010.
This beat the consensus estimate which forecast only a 5.1 point increase to 12.
The indicator’s further increase shows that, according to financial market experts, the economic perspectives for Germany have brightened up on a six-months’-time horizon.
The ZEW report noted that “it might have contributed to experts’ optimism that the markets’ uncertainty concerning the future of the Eurozone has diminished for the time being”.
ZEW President Wolfgang Franz commented that the increased optimism amidst financial market experts “may soon result in companies realizing investments that had been postponed earlier on”.
Nevertheless, he added that the weak economic situation of Germany’s major trade partners suggests that the country’s economy will further grow at a “moderate rate” in 2013.
The assessment of the current economic situation for Germany remained almost unchanged in January. The respective indicator increased by 1.4 points and now stands at the 7.1-point-mark.
With regard to the Eurozone, economic expectations augmented “significantly” in January as well. The corresponding indicator rose by 23.6 points to 31.2 points, while the consensus forecast was looking for only 14.1 points. Furthermore, the indicator for the current economic situation in the region “improved slightly”. It now stands at minus 75.3 points (up 4.6 points compared to the previous month).