German investor sentiment improves in September
German investor sentiment improved in September after the European Central Bank eased monetary policy earlier this month, according to the latest survey from the ZEW Center for European Economic Research in Mannheim.
The headline ZEW economic expectations index improved to -22.5 from -44.1 in August, beating expectations for a reading of -32.2.
However, the current situation index fell to -19.9 in September from -13.5% the month before, missing expectations for a reading of -15.0 and marking the lowest reading since May 2010.
ZEW President Achim Wambach said: "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.
"However, 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. And there is still hope that a no deal Brexit can be avoided. In addition, the European Central Bank is attempting to reduce the economic risks in the eurozone by further easing its monetary policy."
Claus Vistesen, chief eurozone economist at Pantheon Macroeconomics, said the survey was "encouraging".
"A solid headline, probably motivated by last week’s aggressive easing announcements by the ECB. The current situation index, however, remained soft; indeed it fell further this month, to -19.9 from -13.5 in August.
"Inflation and long-term rate expectations jumped across the board for all major economic regions, and short-term rate expectations also rose, though more modestly. This sentiment carried over into expectations for the major equity markets, which also improved. Overall, the rebound is encouraging, but the index is still depressed compared to its history; more is needed to convincingly call a bottom."