FRANKFURT: German investor confidence rose again in February, a key survey showed Tuesday, as expectations grew that Europe’s largest economy would dodge a deep downturn.
The ZEW institute’s economic expectations index jumped by 11.2 points to 28.1 points, the fifth consecutive monthly increase, lifting the indicator to its highest level since the Russian invasion of Ukraine was launched a year ago.
Analysts surveyed by Factset had predicted a smaller boost in morale, to 23 points.
The report comes amid growing signs that Germany has weathered the fallout from the Ukraine war better than initially feared.
Falling energy prices and support measures unveiled by the German government in recent months have eased concerns about a cost-of-living squeeze, while China’s easing of strict Covid restrictions has buoyed German exporters.
The German government said last month that it now expected the country to avoid a recession this year and eke out growth of 0.2 percent.
The increased optimism stems from “higher profit expectations in the energy- and export-oriented sectors as well as the consumer-related parts of the economy”, ZEW president Achim Wambach said in a statement.
“Expectations for long-term interest rates are also rising and the banking sector indicator has reached its highest level since 2004,” he added.
The outlook for the German economy was still “mixed”, cautioned LBBW bank economist Jens-Oliver Niklasch, pointing to persistent struggles in the industrial and construction sectors.
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