German investor morale surges
The mood among German investors improved far more than forecast in December, a survey showed on Tuesday, with an unexpected rise in October exports boosting hopes for an upturn in Europe’s biggest economy.
The ZEW research institute’s monthly index on economic morale among investors rose to 10.7 from -2.1 a month earlier. The reading exceeded even the highest forecast in a Reuters poll of economists, which showed a consensus prediction of 0.0.
Europe’s biggest economy has been going through a soft patch as its export-oriented manufacturers struggle against a backdrop of trade friction, an ailing car industry and uncertainties over Britain’s planned departure from the European Union.
But data on Monday showed German exports rose unexpectedly in October as demand from beyond Europe increased, helping to buoy investor sentiment. ZEW President Achim Wambach said the rise in morale “rests on the hope that German exports and private consumption will develop better than previously thought”.