RTTNews - Tuesday, results of a closely-watched survey showed that German economic sentiment improved significantly in June, rising for the eighth month in a row.
The ZEW Indicator of Economic Sentiment for Germany rose to 44.8 points in June from 31.1 points in May. The latest reading came much better than the 34 points expected by economists. Further, the June reading is above the indicator's historical average of 26.3 points.
Financial experts' view on the current situation in the largest Eurozone economy improved for the first time since September 2008. The corresponding indicator rose to minus 89.7 points from minus 92.8. Economists were looking for a reading of minus 92.6.
The repeated recovery of economic sentiment reveals a consolidating optimism among the financial market experts, even though the industrial production and incoming orders do not yet show a clear upward trend, the ZEW said in a statement.
Citing the increasing confidence among survey experts regarding further development of the banking sector, ZEW said this can be seen as a positive signal with respect to future lending conditions.
According ZEW President Wolfgang Franz, experts are further seeing tendencies for a recovery at the end of this year. This cautious optimism should not be destroyed by overly pessimistic projections.
The economic expectations for the Eurozone improved in June, with the relevant indicator rising 14.2 points to 42.7 points. Economists had expected a figure of 34. The gauge for the current economic situation in the euro zone moved up 2.5 points to minus 90.7 points.
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